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What Is A 2nd Mortgage?There are various types of mortgage products on the market, both for new mortgage customers and those looking for a 2nd mortgage. 
What is a second mortgage? It is a type of financial product and is designed towards people that already have a mortgage, albeit a 100% mortgage, sub prime mortgage, endowment or repayment mortgage. The second criteria is the amount of equity that is currently available in the property that can be secured against the 2nd mortgage. Mortgages basically work with the ability to have multiple loans or liens written against them in the form of loans and mortgages, provided the equity to secure the finance is available. The initial mortgage written becomes the first mortgage and has priority over the debt being written, should the customer default on the repayments. The second mortgage or loan then comes in behind the first mortgage, and claims whatever is available from the remainder. Due to this, it is a higher risk, since the second mortgage or lien does not have priority over the property, and so it will probably demand a higher level of interest over the term of the loan in order to account for the bigger risk that the lender is taking. The term usually offered is between 1 - 30 years and subject to such financial criteria as debt to income evaluation (to ensure the debt can be repaid each month comfortably from income), equity in the property receiving the 2nd mortgage, secure job and income, good credit profile and history. 100 2nd Mortgage: privacy |
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