A second mortgage is a second loan that you take and secure with your home equity, in addition to your original mortgage, with a different mortgage lender. While making payments on your second mortgage, you must also continue to make the payments on the original mortgage. The term “second” indicates that a second loan is registered against your home in addition to the first mortgage. If the loan goes into default—that is, if you cannot continue to make your payments and your home is sold to pay off the mortgage—your original mortgage lender has priority and would be paid before any funds go toward the second mortgage lender. Therefore, a second mortgage is riskier for mortgage lenders. This is why interest rates on second mortgages are usually higher than on first mortgages.
Did you know that it should never cost qualified applicants to have a Mortgage Broker looking out for their best interests? We are compensated by the lender & in most cases, we offer our services free of charge to our clients. We are dedicated full service mortgage/financial professionals focused on doing what`s best for our clients! We pride ourselves on providing clients with financial solutions that are specific to their needs and lifestyle.We know that different people need different things in a mortgage.
