What is a second mortgage?

A second mortgage is a type of mortgage refinancing that allows you to acquire a second loan on your home in addition to your first home loan. ... more

A second mortgage is another name for a home equity loan. The mortgage on your home is your first mortgage and a home equity loan would be your second mortgage. ... more

Second Mortgages are loans tied to the equity in your property, and in most cases the interest is tax deductible. The money borrowed can be used for home improvement, debt consolidation, financial investments, down payment on another property or car loans. Canton Street Mortgage offers two types of Second Mortgages, Equity Lines of Credit and Fixed Rate Second Mortgages. ... more

Second mortgages are called second mortgages because they are placed in the second position on your title. Second Mortgages always have higher rates than first mortgages. Home equity loans and home equity lines of credit are both types of second mortgages. ... more

A second mortgage is a secured loan (or mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence. In real estate, a property can have multiple loans against it. The loan which is registered with county or city registry first is called the first mortgage. The loan registered second is called the second mortgage. A property can have a third or even fourth mortgage, but those are rarer. Second mortgages are called subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage gets any money. Thus, second mortgages are riskier for the lender, who generally charges a higher interest rate. ... more

Simply put, it is an additional loan taken against a property. Since a first mortgage must be paid off first, lenders consider second mortgages riskier. For this reason, they typically charge higher interest rates and points for the transaction. Second mortgages are different from refinancing initiatives. When you refinance a first mortgage, you're essentially renegotiating the terms of the first loan. A second mortgage, on the other hand, involves borrowing against the equity you've already up built up in your property. The most straightforward type of second loan simply involves hedging your equity for cash or credit now. For instance, let's say that you've paid off $40,000 on a first mortgage of $200,000. You can then take a second mortgage to borrow against that $40,000 you've already paid. Since the bank or lending institution knows that the money is secured, you will likely get a relatively good rate. ... more

A second mortgage is another name for a home equity loan. The mortgage on your home is your first mortgage and a home equity loan is your second mortgage. ... more

Mortgage loan taken out after the first mortgage and secured against the same asset as the first mortgage loan. Mortgage loan is based on the amount of equity or ownership interest you have in your home. ... more

Second mortgage is the second loan against your property. As you payoff the first mortgage loan your cashable home equity value increases. A second mortgage loan helps you cash out on this accumulated equity value. Take for example that you have obtained a first mortgage loan for $100,000 and currently you have $60,000 left to pay on the mortgage. The difference amount i.e., $40,000 is the home equity value on which you can purchase a second mortgage loan. ... more

A second mortgage is the second loan against a specific piece of property. Consider this example: Let’s say you have a first mortgage on your home. The value is $100,000 and you have a $60,000 balance left to pay on your loan. The $40,000 difference is considered equity, or the part of the home that you own outright. If you wish to further borrow against that $40,000 you would be taking out a second mortgage on the home in order to do so. Why borrow against the equity? In many cases, the interest rate you pay on your mortgage is lower than many other types of loans. Interest is also frequently tax deductible for a first or second mortgage, but not necessarily for a car loan or a credit card. (Consult your tax advisor for more information on tax deductibility and home loans. ... more