mortgage

What is second mortgage?

 

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.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement
advertisement

Blog

Tara Baukus Mello

Toyota, Infiniti top preowned value awards

Toyota and Infiniti came out on top in the Pre-Owned Value Awards from TrueCar.  ... Read more


Connect with us