What is a second mortgage?
The Bankrate.com financial term of the day is: "second mortgage."
When you're paying a mortgage and have built up equity in your home, you can borrow against that value with what's called a second mortgage. If an owner defaults and the home has to be sold, the second mortgage takes a back seat and doesn't receive any of the proceeds until the original mortgage -- the "first mortgage" -- has been satisfied.
A second mortgage allows you to go back to the well and borrow again by tapping into your equity when you're already paying on a home loan.
To compare home loans, visit the Mortgage section at Bankrate.com.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.
Car loans for consumers with the worst credit, so-called subprime and deep subprime, have fallen to its lowest share of auto loans overall since 2012.
... Read more