A second mortgage is in the original mortgage is still valid in the case of a secondary mortgage. If the event of default, the original mortgage would be to get property liquidation of all proceeds until all pay off.

    Since the second mortgage only after the first mortgage is paid off only after get repayment, so the second mortgage interest rates are often higher, and the borrowed amount will be less than the first mortgage.

    Check in the secondary mortgage mean? When most people buying a house or property, they will be from using property as collateral for a loan Agency to get a home loan. This home loan is called a mortgage, or more specifically, the first mortgage. The borrower must be the monthly instalments to repay the loan, including the principal and interest part. Over time, as the homeowners monthly repayment, the House of worth in economic rise in value.

    With the first mortgage, the second mortgage must be in a specific period at a fixed or variable interest rates to repay, depending on the lender signed the loan agreement. The borrower must pay off the loan, then the borrower to its home equity to make another mortgage.