Second trust deeds are available in a number of different forms if a person wishes to leave their first trust deed intact and generate dollars for their personal use.  It is usually recognized that a person's principal residence can help to obtain money for the homeowner at the most reasonable rate, and it is generally tax deductible.

The amount of loan that can be available to you will depend, first of all, on your "equity."  Equity is the difference between the value of your property and the loan(s) outstanding against it. Different lenders have different rules or standards for the amount they will loan against this equity - ranging from 100% loan-to-value and downward.  All will require an appraisal dated within the last 12 months at least.

(Much publicity has been given to the "125%" to "150%" loans, but they fall into a different category and are not discussed herein.  Please call The Mortgage House direct if more information is desired.)

Secondly, the amount and terms of the second trust deed will be determined by an applicant's credit history and current credit ratings.  The terms are often dictated by the applicant's credit "scores" (detailed information on this subject is available).  Various types of seconds are available - including "equity lines" where one can use checks and draw against a certain limit when and as funds are needed and "equity loans" which have a fixed amount issued up front and paid back over a set amortized term.

These seconds can also have various payback terms - anywhere from 5 to 30 years, some with balloon payments, some without.  It is best to determine about how much money you need (for your purpose), and what would be the most convenient way for you to pay it back.

Some people need all the money right now and will repay it over a set term at a set interest rate, others need some funds now, maybe some later, and can often pay it down with extra monies received occasionally (such as bonus pay, extra overtime, etc).

The basic "equity line" will need at least interest paid back monthly, but many plans are available.

If a person's first trust deed has a good interest rate for a short term remaining, a second trust deed can be a wise choice to obtain additional funds.  Generally, a lender will not care how the funds are used - maybe they are for paying off credit card debt which might be a wise move (credit card debt not being tax deductible nor amortized with simple interest). Or, maybe they are just for a fun vacation!

If a person and their property qualifies for the loan, that is the lender's only concern.