Second Mortgage

Second Mortgage is another loan against your property. Second Mortgage proves to be more risky for the lenders because if the loan goes into default then the first or original mortgage will be payed off first. Second Mortgages are available on higher interest rates as compared to first mortgage. When you apply for a second mortgage, lenders look for the following points:

• Equity on the first mortgage
• your credit score
• your employment

These loans are useful when you need a lot of money. These mortgages allow for higher loan as loan against a home is considered safe. Time period for a second mortgage may vary but its is usually for 30 years but repayment may be low. Second Mortgage can turn into a foreclosure if you default on the loan payment.