The cost of a San Francisco second mortgage will vary for each homeowner depending on several different factors. When people take out a home equity line of credit, their San Francisco mortgage company does not have to give them an exact monthly payment amount. They must explain how they calculate the payments on their San Francisco second mortgages, though.

Since the amount of money that people borrow from their home equity line of credit will vary, and their balance will change if they use it, San Francisco mortgage companies can't provide an exact monthly payment amount. Homeowners can estimate how much their San Francisco second mortgage payments will run, though. If the monthly payment term is 5 percent of an outstanding balance of $5,000, for example, the minimum monthly payments would be $250.

San Francisco mortgage companies may charge a fee for lending the money, as well. Their fees are usually a percentage of the San Francisco second mortgages, and are sometimes referred to as points. One point is equal to one percent of the amount of the second mortgage. Taking out a San Francisco second mortgage of $10,000 with a fee of eight points, for example, will require $800 in points to be paid. San Francisco mortgage companies charge different amounts, so always ask about the points before taking out a second mortgage.

Also ask about the basis that a San Francisco mortgage company will use to determine the new rate of interest. This is the only way to tell if a second mortgage will really be affordable on a monthly basis or not.