A second mortgage loan that allows the borrower to obtain multiple advances of funds up to an approved amount is known as a?

A second mortgage loan that permits the borrower to draw multiple advances of funds up to a predetermined limit is known as a Home Equity Line of Credit (HELOC). This type of loan operates similarly to a credit card, allowing the borrower flexibility in accessing funds as needed, up to the total credit limit established. This is particularly beneficial for homeowners looking to finance various expenses, such as home renovations, education, or debt consolidation, as they can withdraw funds and pay them back, only incurring interest on the amount borrowed.

The structure of a HELOC typically involves a draw period where the borrower can take funds, followed by a repayment period where they pay back the borrowed amount. The interest rates for HELOCs are usually variable, and the amount available to borrow is determined based on the equity the homeowner has in their property.

In contrast, a biweekly mortgage refers to a loan repayment schedule rather than a specific loan type. A bridge loan is designed for short-term financing between the purchase of a new property and the sale of an existing one, not allowing for multiple advances. An installment second mortgage provides a lump sum that is repaid in fixed installments, rather than allowing draw flexibility. Therefore, the characteristics of a HELOC align best with the description