Back to Glossary
Second Mortgage
January 19, 2023
A second mortgage is a sort of the second mortgage that is obtained while the initial mortgage is still in force. In the case of a default, the original mortgage would get the full profits of the property's liquidation until it was completely paid off. Because the second mortgage would only receive repayments after the first mortgage was paid off, the interest rate charged for the second mortgage is greater, and the amount borrowed is less than that of the first mortgage. A mortgage calculator is a helpful tool for budgeting these expenses.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement