There are two types of home equity debt: Mortgage Fresno home equity loans and Mortgage Fresno home equity lines of credit. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage.

If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan known as a home equity mortgage. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

A home equity loan is a one-time lump sum that is paid off over a set amount of time, with a fixed interest rate and the same payments each month. Once you get the money, you cannot borrow further from the loan.

Home equity loans usually are repaid in a shorter period than first mortgages. Most commonly, mortgages are set up to be repaid over 30 years. Home equity loans often have a repayment period of 15 years, although it might be as short as five and as long as 30 years.