How does a Second Mortgage work?
A second mortgage is a broad term that can be used for any second lien on your home behind your primary mortgage. When people use the term "second mortgage," they're typically talking about home equity loan or a HELOC. Second mortgages accrue interest and are a form of secured debt, meaning if you're not able to make the monthly payments associated with the loan, you may be putting your home at risk.
How does a Home Value Investment work?
When you get a Home Value Investment, a financing partner like Noah will approve you for a maximum funding amount in exchange for a percentage of your home’s value. Unlike a second mortgage, a Home Value Investment does not have any interest or monthly payments associated with it for up to 10 years – instead, Noah will invest in the value of your home. When you return our investment, you’ll pay Noah based on the value of the home at that time. If it’s grown in value, we’ll share in the gains with you. If it’s decreased in value, we’ll also share in those losses alongside you.