Just like a regular mortgage, a second mortgage has several different options that are available to you. You have options both with how you can take the money as well as how you can repay it.A second mortgage is essentially when you borrow the equity that you have built up in your home. Most lenders will allow you the option to take out as much as 95% of the equity you have in your home in the form of a second mortgage or home equity loan. Should you choose to do this, you can have access to the money in two ways:

Lump sum: if you have a large sum of money that you owe, this may be your best option. This makes sense if you owe a lot of money all at once, but need a lower interest rate than what you would have with say, a credit card. In this instance you would repay the loan much like a regular mortgage: with fixed payments paid at regular intervals for a set period of time.

Line of credit: If you don’t need all the money at once, you can instead take it out in the form of a line of credit. This will allow you to take as much or as little as you need at a time, or, if you prefer, take nothing at all. This works as an emergency fund of sorts. If you choose to take out the money in this way you will pay it back similarly to a credit card, wherein you will have minimum monthly payments, but also have the option to repay an amount above that in order to pay off the loan faster.Whatever you choose, a second mortgage or home equity loan through Matrix Mortgage is a great option.