Second mortgages in Kentucky
When homeowners need cash for remodeling projects, unexpected expenses or just about anything else, many opt to liquidate the equity in their homes and do so with a second mortgage. The first mortgage remains in place, as-is. If you want a fixed-rate second mortgage, apply for a home equity loan. Home equity lines of credit or HELOCs have adjustable rates and may be the better option when a borrower needs smaller sums of money spaced over time. If money needed for one big expense, consider the fixed rate home equity loan. Rates on second mortgages are usually higher than first mortgages. Also lenders consider the home’s value when deciding how much to lend. Eighty percent of the home equity value is usually the maximum loan amount a lender will approve.
