Second Mortgage Loans
A second mortgage
is a loan secured the property in which the first mortgage
was placed. The amount one can borrow is based upon
the amount of equity in the home. Equity is determined
by subtracting the amount owed from the home's value.
loans differ from first mortgages in several ways: a
2nd Mortgage often has a higher interest rate, a
shorter term, and may require a balloon payment at term
expiration. Second mortgages are also considered
Home Equity Loans or
Home Equity Lines of Credit as they utilize the equity
in the home as collateral for a loan.
Second mortgage loans are used by many people to pay off
credit card debt or other high interest debt.
Essentially you can use the cash for any reason you wish,
make home improvements, consolidate debt, buy a car, or
No Equity in your Home? - With a 125% Mortgage
without equity you can borrow up to 125% of the value of