Barrie's Mortgage Expert
Second Mortgage
courtesy eldercare2008-cc-flickr
A second mortgage can be used to reduce your monthly debt payments, make home improvements or free up cash for whatever you want.
Like a home equity loan or others of its type, the lender requires it to be secured by a second mortgage lien.
Because the lender is at a higher risk in case of default (since they will not receive any money from the sale of the house until the first lender is paid, and if there is no money left over, loses their money), the interest rates are higher.
You can also use a second mortgage for consolidating credit card debts by reducing your rates and payments and converting compound interest into simple interest. Since the repayment amount is higher than the initial mortgage, it is better to use these funds for heavier expenses.
February 15, 2010 - 11:57 pm
If there is a lien on the house, can you renew the mortgage without paying lien?
February 23, 2010 - 10:21 am
Hello Lorraine and thank you for your question. The mortgage could probably be renewed with the current lender without much problem since they would not be checking for liens at that time. However if you wanted to refinance the mortgage or take it to a new lender the lien would show up and you would have some issues. I hope this helps and if you have any further questions please do not hesitate to contact me.
Thanks
September 24, 2010 - 9:19 am
Hi Rhonda
you should start looking now for a new lender, if your mortgage is coming due, in December for the 2nd.
if you have already done so great!
If not, please let me know , maybe I can help