Yes, a home equity loan and a second mortgage are practically the same thing. You will see lenders using both terms. Technically, a home equity loan would not have to be a second mortgage. For example, if you owned your house free and clear (no mortgage), a loan against it wouldn't be a second mortgage, but would be a first mortgage. But the key point to remember is that whichever term they use, they are placing a lien against your home which is securing the loan. The best place to shop for this type of loan is at financial institutions where you currently do business or that are known to you. The first place to check is the mortgage company that holds your first mortgage. They often offer good deal to current customers. That's not to say that some of the lenders who advertise for customers aren't offering good deals -- some are -- but you have to look especially carefully at the closing costs and other fees with lenders who do a lot of mass market advertising. (Of course, you need to check these fees with any lender.) Often lenders will roll the closing costs back into your loan, so that you may get a check for the $10,000 you are seeking, but you may actually be borrowing more than that. In some cases, quite a bit more. Often a good time to get a home equity loan is when you refinance your home. If you are currently paying above market interest rates, consider refinancing and obtaining a home equity loan at the same time from the same lender you refinance with. Often in this case they'll give you a home equity loan with no additional closing costs. As far as the rates you've been quoted, the 4.75 percent seems closer to what I see being offered around where I live. The rates should apply to any amount of loan, not just to large amounts. In fact, many lenders will offer you a home equity line of credit instead of a straight home equity loan. Instead of giving you a check for the amount of your loan, you'll get a check book which allows you to write checks against your line of credit. This is preferable because you don't start paying interest on the money until you actually need it, and if you never need the whole $10,000 available in your credit line, you never actually borrow it. The balance on your home equity line of credit can go up and down just like a credit card balance, and you pay interest on just what you owe. With any loan, just be sure to understand all the fees and costs associated with it. Some lenders, especially those who advertise in the mass media, try to downplay or even hide the fees, and this can mean that what looks on the surface like a good deal isn't such a good deal once you dig down and see what you're really paying.

What an interesting thread this has been; and inspirational, too. The replies have been thoughtful, well constructed, insightful. There is a refreshing thread of compassion and honesty that runs through it all. We have a charity budget, too. We prefer to donate locally; money to the oil company, some to the electric company, new coats, boots, mittens and hats... the food pantry. Kindness is the rare coin that returns the spendthrift twofold, but leaves the miser penniless. I tend to fall into line with steve o on the "choices". As a couple the helpmeet and I have made a lot of tough choices, some worked out better than others. We've been fortunate and sharing some of our good fortune has always been important to us. I worked with a nice guy for some years. A wife, kids... but the guy is a financial moron; one dumb CHOICE after another. They desperately want a house (but she will only live in a particularly trendy community because it's where she grew up). But they are upsidedown on not, but 2, car loans. Wife doesn't work ("we're raising kids, you know"), but gets expensive haircuts, dye jobs, manicures, all to facilitate her appearance in her singing group (that COSTS they money!). He needs dental work desperately, and she's getting a dye-job? I certainly don't understand the priorities. Choices; what are you willing to do to get what you want, what are you willing to give up in the short term to attain long range goals? Every one of has to compromise every day of our lives. I see no willingness to compromise in their household and I see that it keeps them from getting ahead. He lamented last summer that she didn't help him. She was home all day with kids, but the sink was full of dishes from last night's supper when he returned home, he did them. When he asked me what I'd do in his position, I told him she ought to GET A JOB as a cashier/clerk/whatever for a big company (she hasn't worked in over 12 years). She ought to tap into their insurance and retirement programs, and they ought to bank every dime she makes, living on his pay, and retiring the car loans ASAP. In a year/two they'd have a very tidy downpayment for a home. "She'd never go for that, she's too qualified to be a cashier, she could be a music teacher... ". Then why isn't she? I think it's pretty much all about choices.

cordavamom: "He said as long as the house had power he could do an inspection on the whole house, he'd turn on the water etc. The bank is okay with him doing this. Winter is well over, (it's 77 degrees here today). the bank has made no mention of my son having the home re winterized if the contract falls through -- is this normal?" I can't speak for what is normal with a bank. That said, obviously if the house has power and gas, the electrical and HVAC system can indeed be inspectedand of course, roof structural, which are non-utilities dependent. However, IMO, the HI is a fool to turn on the water....as he is bargaining that there are no problems with the plumbing that could cause property damage. Granted, with a 3 year old home, the chance of that being the case is less than with an older home...however, with a foreclosure, all bets are off as far as the norm...as all too often foreclosed properties are damaged due to owners who want pay-back because of the foreclosure (such as those who were duped by the predatory lenders) or, in a divorce, people can get mighty vindictive. Sometimes the damage is obvioussometimes hidden. We had neighbors who divorced. They had a beautifully upgraded home, very well maintained; the hubby was the original owner of the house brand new, pre-marriage. They split because the wife was having an affair; she continued to live in the house with the children...then had affair guy move in with her. Needless to say, soon to be X was VERY upset...the house went into foreclosure. Wife and affair guy moved out. The bank held an open house through a realtorand we were shocked to see what had been done to the insidedamage everywherethe couple who bought it spent thousands on repairsand he was a contractor..so labor was not an issue. That said, your son needs to make certain that the HI carries errors and omissions insurancethat way, if any damage occurs once the water is turned on, the HI has the financial resources with which to cover it....in addition, your son should make sure that there is some sort of condition in the HI contract where your son cant be held for damages due to the HI turning on the water when he hasnt a clue as to whether of not there is a plumbing problem Last but not least, the water should be on for at least 48 hours prior to inspection, in order to determine if there are any leaks as water somtimes needs a while to circulate before some problems can become evident Last but not least, as you son has no claim to the property, the bank, as the owner/seller would be responsible for any required "winterization", unless your son signed something agreeing otherwise Hope this helps

Lukki, I surely understand what you are saying - and I don't get any of this either. What I have to do right now is believe my son. I am thinking he may be misinformed, but I don't believe he is lying to us. I am still thinking that when I sign the title over, it will have both of their names on it. I do not know what I will do then. My sister is also on the title; I cannot even imagine her reaction. She does not know what has transpired over the last two weeks. I do not know what her parents are thinking either. They are on the other side of the country and I have met them twice. Our offer of money was way before theirs, so it would seem to me that they might have contacted us?? They know at the moment this is my house. If I were them, I wouldn't be putting a penny in. Kswl, this is not a new situation. When he first offered to buy the house, my sister and I sat down with both of them and explained the terms of the sale, which were basically the price and title. No other strings were attached. So she knew the terms from day 1. But you are right, no outcome will satisfy all parties. The whole situation is horrible. I have tried and tried - we all have, and when any one of us wants to give up on her, I say try harder. We have all bit our tongues and tried to keep the peace. My son defends her every move - and can explain away any of her antics, FB postings, etc. She is both the antagonizer and the victim. I think he feels the need to take care of her. But at this point, at least we see our son, not as much as we would like, but we do. He is the youngest and we always seemed to have the closest relationship with him. Unfortunately, not anymore and there is nothing we can do about it. I don't know what I will do if both names are on the title when I have to sign. I just don't know, but I do know that whatever happens, this nightmare will be over by June 1st. Thanks to all of you for your support! Great day to all!!