Home Equity Loan Mortgage
What is the difference between a mortgage with 1st priority, 2 mortgage and home equity loan?
I am looking for funding to make home improvement repairs, I posted a request for a home equity loan through lending tree. The lenders throw concepts like mortgage with 1st priority, 2 mortgage, and home equity loan.
The # denotes seniority / position in the chain of title. A first mortgage is a loan secured by the property that is in 1st position and get paid what is due them only if the property is sold (municipal liens like property taxes is really the first, though). A second mortgage is a loan that has a "junior" position behind a first mortgage. Home equity loans are just an everyday term generally applied to other Mortgages. A HELOC or Home Equity Line of Credit (as mentioned by another responder) is a type of home equity loan that works more like a credit card that you can draw on equity as needed and pay it back and pull it again and again during the "loan" term. Technically you can get the 3rd, 4th, 5th, etc. mortgages or any of these could be a "home equity" loans that they would be loans secured by remaining equity in the property, but it would be highly unusual in a residential property.