If you own a second home or vacation home in a sought-after area, you may have seen even bigger equity gains than average.

But what happens if you want to tap that equity? Can you take out a home equity loan or HELOC on your second home?

The answer may be yes, but the rules are a little different than for your primary home. Here’s what to expect.

Home equity loans and HELOCs on second homes

Instead, you could access the value of your home using a cash-out refinance, home equity loan, or home equity line https://fastcashloan.net/installment-loans-ct/ of credit (HELOC).

Cashing out on a second home can be more appealing to some homeowners than changing the mortgage on their primary home or reducing its equity.

Using your second home reduces the risk of being in a negative equity position with your primary residence should the market take a turn for the worse. (suite…)