What is a Second Mortgage?
Also called a home loan, a second mortgage is secured by the in a house. equals the value of the house less the balance owed on the homeowner's .
Second mortgages are not the same as home credit (HELOCs).lines of
How Does a Second Mortgage Work?
Second mortgages are similar in concept to traditional mortgages. For example, second mortgages generally must be repaid over a fixed period. Some lenders may fixed rates on these loans; others might variable rates.
Why Does a Second Mortgage Matter?
Second mortgages can be viable options when compared to credit cards or other high-interest, unsecured loans. In addition, interest is tax-deductible, making the interest rates on second mortgages sometimes lower than they appear when one considers the tax savings.
However, not all second mortgages are created equally. Borrowers are well served to compare fees, interest rates, and repayment terms among . After all, when a borrower defaults, his or her home could very well end up belonging to the bank for good.