People across the nation are searching for alternative financing solutions for home refinancing, because more likely than not they are already locked into a great rate for thirty years. Take a look at the mortgage refinance loan's little brother, the second mortgage. This junior loan is usually smaller than the older, more senior mortgage loan, but it is more flexible and it may not be as difficult to deal with. Examine the benefits of the younger more agile second mortgage and you may reconsider refinancing your 1st mortgage.

# Second mortgages require no private mortgage insurance (pmi).

# You can borrow up to 125% of the appraised value of your home.

# 2nd Mortgage loans cohesively subordinate to your existing mortgage.

# Flexible credit lines allow you to access money any time.

# Home equity lines of credit can be converted to a fixed rate term.

Second mortgage loans are great financing tools for getting cash out to finance, pool construction, debt consolidation, and even purchase a 2nd home. According to a recent study by Harvard University's Joint Center for Housing Studies those who own second homes are more likely to reduce spending on their primary residence relative to their income than those who do not own second homes. This Harvard study notes "compelling evidence that the choice to adjust (housing) consumption by adding a second home rather than by increasing the value of the primary residence must lower demand elasticities for primary homes among second-home owners even more."

Whatever kind of loan you choose when looking for cash out using you home, make sure that you understand how the loan works. You need to know how the interest is being calculated and if you you have a pre-penalty for early pay off. Above all, take the money you get from the home equity loan and invest it wisely.