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If you are a homeowner in need of cash and refinancing is not a possibility, using a second mortgage to access equity in your home can save you money. Home equity lines of credit are expensive and you might be tempted to spend more than you want. Here are several advantages of second mortgage loans to help you determine if this type of loan is right for you.

Interest rates have been on the rise; if you have no desire to refinance your primary mortgage but need an equity loan, a second mortgage could be your best option. There are a number of advantages second mortgages have over the equity line of credit. One of the main advantages in this economy is that your second mortgage can come with a fixed interest rate, allowing you to budget for a predictable payment. Equity lines of credit come with variable interest rates that change every time your lender adjusts the interest rate.

Taking out a second mortgage allows you to borrow a specific amount at a specific rate. With an equity line of credit, borrowers have access to the equity in their homes using a debit card or checkbook. This ease of access to cash causes many homeowners to overspend, squandering their equity on purchases they would not have otherwise made. With a second mortgage you will not have the temptation to overspend. Remember the equity loan you choose is secured by your home just like your primary mortgage. If you fall behind on the payments your lender will foreclose and take your home.

You can learn more about your mortgage options by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.