| A second mortgage is a second loan raised
by a property owner against the collateral of the property. A second
mortgage is sometimes referred to as a secured loan, usually
taken out for home improvements or to start up a business using the equity
in your property. Often the interest rate is higher then your first mortgage
rate reflecting the fact you are borrowing more heavily and the risk is
higher to the lender given the second mortgage has a
lien position subordinate to the first mortgage and subsequently gets
paid second in the event of a default, hence the term second mortgage. |
