If you take out a second mortgage on your home, it will need to be paid back over time.
Some second mortgage loans may extend that term for 15-20 years, others may require the mortgage be paid off in as little as one year. The term of a loan like this is going to be dependent upon what you need the cash for and how you are able to pay back the loan.
Seniors who don't want to consider a reverse mortgage might consider taking this loan out for a longer period of time than is believed to be necessary. This can avoid financial hardship in making payments and provide extra comfort if financial conditions change.
When you do take out a second mortgage, you should always be sure that you fully understand the terms of the mortgage note. A low payment is good, but if it means that you have a large balloon payment at some time, you could find yourself in trouble.
Like any mortgage, a second mortgage should also have flexible terms that allow you to pay off the mortgage in advance without penalty. So for instance, if you find that you can pay it off several years early, you don't want to have to pay additional fees to allow you to do this.
