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Second Mortgage
Why Take Out a Second Mortgage?
Traditional Second Mortgage
Home Equity Line of Credit (HELOC)
Preparing Your Credit
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Locking in a Rate
Understanding Points
High-Interest Debt: A Way Out
Paying for College
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An Affordable Monthly Payment
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HELOCs and Monthly Payments
The Role of the Loan Officer
 

Paying for College: Make the Dream Come True

Many American parents dream for years about the day their child leaves for college. The moment can be bittersweet, especially if your son or daughter is going to school out of state, but for parents who are not financially prepared, pride and nostalgia can be accompanied by something akin to terror.

Taking out a second mortgage loan can be the answer for home owners who find themselves in this position. College tuition costs continue to skyrocket, and can be upwards of $30,000 a year. Scholarships and grants are helpful, but often not enough, especially when you factor in the additional cost of books and of room and board for on-campus students.

A home equity line of credit rather than a traditional second mortgage loan can be a good choice. It can be hard to anticipate the complete out-of-pocket cost of a college education, especially if your ambitious offspring decides to become a doctor or a lawyer, so opening a credit line rather than borrowing a lump sum might be the best way to finance it.

Make sure you have explored all options before deciding on a home equity line of credit or second mortgage loan as the best way to pay for your child’s education. You will often get certain tax benefits, as well. Contact a tax professional, to learn the exact amount which may be tax-deductible. While this proves a good choice for many families, every situation is different, and putting your home up to secure a loan is a big step.

Your loan officer will be happy to discuss with you the benefits and obligations of choosing a second mortgage loan or home equity line of a credit to finance college tuition.