When two longtime customers recently came to see Donna Smith, they were stressed about their credit card payments.

Donna shared with them the option to apply for a second mortgage loan, giving them the money to pay off all of their cards and consolidate their debt into one easy monthly payment.

Small child playing in a pool

“They felt relieved to know that the cards were being paid off and they didn’t have such a tight budget to meet,” Donna, an INB VP, customer relationship officer, says. “Now they’ve kept only one or two cards, and they don’t use them anymore. My goal is to walk them through what they need to do to eliminate the debt and stay on a budget.”

So what’s a second mortgage, and how can it help you financially?

Second Mortgages

A second mortgage is a loan secured by the equity of your home. It’s called a second mortgage because it follows your first mortgage. 

There are two types of second mortgages: home equity lines of credits (also known as HELOCs) and home equity loans. 

These loans are ideal for many scenarios, such as paying for educational expenses, vacations and home improvements, or paying off high-interest credit cards – as with Donna’s customers. 

“We discussed several options available to them regarding loan terms,” Donna says. “Their goal is to have the loan paid off in six years. Since this loan is for credit card consolidation and needs to be paid off as soon as possible – and the amount is a fairly high – it made more sense to go with a fixed rate loan for their situation.”

Apply for a second mortgage

Let’s break down the differences between HELOCs and home equity loans…


Courtney Maszkiewicz, Relationship Banker at INB Wabash, helped a longtime INB customer over the summer to get a HELOC. The family wanted to install a pool in their backyard.  

“It has been wonderful watching this particular customer growing up over the years with the bank from when he was a kid to today, when he has a family of his own,” Courtney says. “They have two small children who were very excited about their new pool!”

A home equity line of credit, or HELOC, is one type of second mortgage. HELOCs allow you to have access to cash to make purchases up to the value of the loan.

HELOCs are flexible: you can withdraw the money as you need it over a fixed amount of time. Repayments schedules are flexible as well, but there is a minimum monthly payment, much like a credit card payment.

Home equity loans

As with a HELOC, a home equity loan is designed to help you meet your goals sooner. Are you looking to remodel your house or take a dream family vacation? Maybe the pandemic has you interested in putting in a pool, as Courtney’s customers did!

With a home equity loan, you can use the equity in your home to make it happen, instead of needing to save cash.

Like a HELOC, you borrow against your home’s equity and use your home as collateral. But there’s a key difference: a home equity loan provides you with a lump sum of money upfront.

You’ll pay back the amount you borrowed, plus interest, on a schedule. Home equity loans are ideal when you know exactly how much money you want to borrow.

Whatever it is you need, we’re here to help at INB. If you’re wondering how a HELOC or home equity loan can help you with your goals, come see us today. Or click the easy online application to get started! Donna Smith’s NMLS # is 662912.

Apply for a second mortgage