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Second Mortgage, Home Equity LoanA secured loan (mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence.Generally, second mortgage hass a higher interest rate and with shorter terms than a "first" mortgage. If the borrower defaults and the property is sold, the second mortgage is paid after the first.Also called Home Equity Loan. A home equity loan is borrowing against the equity you have acquired in your home.Lets suppose your original mortgage was $175,000.00, but your house is worth $225,000.00. The difference is $50,000.00. This $50,000.00 is the equity you have in your home. This is the portion you can borrow either in the form of a lump sum (if so it will be home equity loan or second mortgage), or in the form of a line of credit. Home equity loans are used for all kinds of things. Such as, home improvement, college tuition, new cars, family vacations, etc. |
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Related Mortgage Definitions: Second Home, Vacation Home Second Home Second home is a seasonally occupied property that is not the primary residence of the owner. Such residences are usually found in areas with substantial opportunities for recreation or tourist activity. Second Home As Investment However, when market is ... more... Vacation Home Vacation Home Vacation home is a seasonally occupied property that is not the primary residence of the owner. Such residences are usually found in areas with substantial opportunities for recreation or tourist activity. Vacation Home As Investment When market is ... more... Home Equity Loan Home Equity Loan A home equity loan is borrowing against the equity you have acquired in your home. Lets suppose your original mortgage was $175,000.00, but your house is worth $225,000.00. The difference is $50,000.00. ... more... Second Mortgage, Home Equity Loan Second Mortgage, Home Equity Loan A secured loan (mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence. Generally, second mortgage hass a higher interest rate and with shorter terms than a ... more... |
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