First, the interest rate is likely to be adjustable rather than fixed, like a home equity loan rate. Also, a second mortgage typically has a higher interest rate than a first mortgage. How much higher depends on your credit history, the new loan amount, location, and equity. ...
“With the recent rate cuts, homeowners who locked in higher rates years ago might benefit significantly from this option if they plan to stay in the home long-term.”A major downside, however: If rates have increased since you took out your original mortgage, you could pay more interest ...