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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10238
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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It is the same a line of credit that a second mortgage ?

Customer Question

It is the same a line of credit that a second mortgage ?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.
Dear Customer, thank you for using our service. I would like to assist you today. Responses may have a short delay for review and research.
Yes, the two terms are often used interchangeable.
However, a "line of credit" is more specifically an open ended line of credit (like a credit card) where the homeowner can borrow against the line of credit and repay it, up to the limit of the loan. But unlike a credit card, the loan is secured by the home. The line of credit remains open until either the homeowner or the lender closes it.
A "second mortgage" more often refers to a second secured loan of a fixed amount that is given to the homeowner once and then repaid over time at fixed amounts (for example, if the homeowner borrows $10,000.00 then repays it at $200.00 per month until the amount is repaid plus interest). The loan is then closed.

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