If you already own a home with a mortgage on it, that mortgage is classified as your first mortgage. Second mortgages are additional loans, taken from a different lender from the one that provided your first mortgage. They can be taken out while the first mortgage is still in effect. Second mortgages give their lenders the secondary lien on your home.
Like a first mortgage, a second mortgage is a lump sum installment loan that you pay back until your debt is paid off. You must make payments for both mortgages until each lender has been paid back in full.
In the event of liquidation, your first mortgage lender has the primary lien on your home. You must pay your first mortgage off in full before your second mortgage lender gets paid. Because second mortgages are riskier from the lender’s point of view, they will typically offer you the loan against your home equity. In addition to that, because they hold second rank on your property’s title, interest rates are typically higher than they are for first mortgages.
Second mortgages are riskier from the lender’s point of view, they will typically offer you the loan against your home equity.
We can help you get approved for a second mortgage. All you need to do is fill out a simple application to talk to one of our agents. They will provide you with unbiased mortgage advice and find you appropriate second mortgages to choose from. After your criteria are confirmed, you will promptly be matched with the appropriate banks, brokers, and agents to get you the best second mortgage you qualify for.