A mortgage is a legal document stating a secured interest in real property,
typically a person's home. A second mortgage loan refers to a home loan that is
second in line
in the event of foreclosure or sale of the property. Essentially among the
secured mortgage lenders, the second mortgage holder stands behind the first
mortgage holder and any liens filed against the property prior to the filing of
the 2nd mortgage.
Second mortgage loans can be taken out for a variety of uses, such as debt consolidation and home improvements. These loans are often at a higher rate than first mortgages as they represent a greater risk for the home mortgage lender. But, the interest rate can also be affected by other factors (other than current market conditions), the most likely being:
- The borrower's credit history.
- The CLTV (combined loan to value). This is the percentage of the home's
value that has been borrowed against. For example: Having a first mortgage
of $75,000 and a second of $15,000 borrowed against a house valued at
$100,000 is 90% ($90,000 divided by $100,000).
- Home Purchase Loan Financing - Shopping for your first home or looking to move to a new house? Start by finding a mortgage company here.
- Mortgage Refinancing - Do you have an adjustable rate mortgage that you want to convert to today's current fixed interest rates? Shop available mortgage companies in this directory.
- Debt Settlement - Too many credit cards and other small bills? Having trouble keeping up with the payments? This form of debt help may be the right solution for you. Compare a list of providers provided by the Open Directory Project.
Advertiser Directory Listings:
Mortgages from Quicken Loans
America's Home Loan ExpertsÂ®
At Quicken Loans, they have more than 5,000
passionate home loan experts dedicated to getting you into the home of your
dreams, and finding the right loan to save you thousands of dollars each year!
Your Quicken Loans Home Loan Expert is your Lender for LifeÂ®.
http://www.quickenloans.com ( Secure form)
Main Office Location: 20555 Victor Parkway Livonia, MI 48152
Additional 2nd Mortgage Loan Information:
Second mortgages are often considered synonymous with
equity loans, however that is like comparing apples and oranges. A home
equity loan can be in first or second lien position on a home. For example: When
a homeowner pays off their first mortgage balance and then subsequently obtains
a home equity loan, it is in the primary lien position on the house, and not
a second mortgage.
Second mortgages are also often used by banks as collateral to secure small business credit lines and other non-real estate related debt. In addition, a lender making a basically a larger unsecured loan to a consumer for non-real estate purposes (automobile financing, credit card debt consolidation or educational expenses for example) will sometimes request that they be granted a 2nd mortgage against the consumer's real estate. In some cases, the consumer may not even have any equity available in their home.