mortgage simple definition: Second Mortgage

Second Mortgage

Second Mortgage. Kelvin Kaemingk's 9.20.19 Mortgage Market Update Chalk Talk Radio

Second Mortgage video duration 1 Minute(s) 34 Second(s), published by Capital Forever on 22 09 2019 - 20:16:30.

What is a second mortgage? A second mortgage is the second loan that follows an already registered first mortgage on the property
What do I need to know?. So what was the result of the .25% Fed Rate Cut?

For most people, when they go to purchase a home, they don't pay cash, so they need to obtain financing
However, not everyone's financing needs are the An Army specialist and Purple Heart recipient was gifted a mortgage-free home in Orange County, allowing him to move from Texas to be closer to his parents Work ethic is everything to Kelvin Kaemingk
Kelvin has over two decades of helping people with their finances and he loves every minute and challenge.

What is a second mortgage? A second mortgage is the second loan that follows an already registered first mortgage on the property. What do I need to know? Second mortgages present higher risks for lenders. As a result, they are typically offered with higher interest rates. This is due to the fact that if the borrower defaults on the first mortgage, it actually gets paid off first before the second. What are the risks? The lender of the second mortgage can start the foreclosure process but the first mortgage takes precedence. It must be paid off before the second mortgage. Only after that is the second mortgage lender able to collect on the balance. How does this work? Second mortgages work in relation to the equity of your home. Equity is the market value of your home relative to the loan balances you currently have. Equity increases with appreciation. What are the pros? Private lenders don't look at your income to qualify you. Also, they are able to provide faster approvals than a bank.