Interest Rate

• The interest rate for second mortgages can be a variable rate, as opposed to a fixed rate that came with a first mortgage. Interest rates are subject to change, and while they are a major consideration, the bottom line repayment value is the number that consumers should focus on when comparing one loan term to another. The total amortized repayment value is the one that determines the best loan.
  
  

Lender Fees

• A second mortgage will come fully equipped with closing costs---much like a first mortgage. This is a good place to begin comparing one lender's fees to another. The lender with the least amount of fees when it comes to closing costs may also be the lender with the lowest cost overall.
  
  

Considerations

• Some homeowners opt to receive a home equity line of credit to use on a revolving basis as opposed to a traditional second mortgage. When comparing options for a second mortgage, inquiring about various loan products can also be beneficial when weighing potential financial benefits.