Mortgage Advisors

mortgage advice

Second Mortgage

A second mortgage is a loan that is taken out after the primary mortgage, on the same property. Second mortgages usually have a shorter repayment period and higher interest rates, because they are a higher risk to the lender. Second mortgages are called subordinate, because if the loan goes into default, the first mortgage will be paid off first. Second mortgages are often used for home improvements, debt consolidation, purchasing additional homes, or avoiding private mortgage insurance.