Many companies will charge a fee for lending you money. The fee is usually a percentage of the loan and is sometimes referred to as "points."

One point is equal to one percent of the amount you borrow. For example, if you were to borrow $10,000 with a fee of eight points, you would pay $800 in "points."

The number of points mortgage companies charge varies, so it may be worthwhile to shop around. If the fee seems too high, you may be able to bargain for or find a lower fee.

Be sure to get the amount of the fee in writing before you take the loan. Many states limit the amount of fees a mortgage company may charge on a second mortgage loan.

You may want to check with your state's consumer protection office or banking commissioner to determine whether there is a limit in your state.

Home Equity Credit Line

Interest rates

Loan Costs

Payment Calculations

Second Mortgage term