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What Is A Second Mortgage?




Taking advantage of the accrued equity of your home

A second mortgage is a loan that is secured by the equity in your home. When you obtain a second mortgage loan the lender will place a lien on your house. This lien will be recorded in 2nd position after your primary or 1st mortgage lender's lien, hence the term second mortgage.

A second mortgage is also sometimes referred to as a home equity loan. There is no difference between a home equity loan and a second mortgage. These are just two different terms for the same subject.

A second mortgage can either be a fixed-rate loan or an adjustable-rate credit line. Interest rates and loan program terms will vary from lender to lender so it is important to shop around and compare before committing to any one offer.

With all the home equity loan offers and the rising value of your home, you maybe tempted to max out the value of your house with a second mortgage. Money from a second mortgage can be used for many things. Still, it maybe wise to think of the accured equity of your home as an emergency fund and keep, at least part of it, in reserve!

Loan proceeds from a second mortgage loan can be used for just about anything. Many consumers take out 2nd mortgage loans to consolidate debt, do home improvements or pay for their kids college education. Whatever you decide to do with your loan proceeds, it is important to remember that if you default on your payment you can lose your home! Make sure that you are taking the loan out for a worthwhile purpose.

Another plus of a second mortgage loan is that the interest you pay back on the loan may be tax deductible. Consult your tax advisor regarding your personal situation, but in most cases the interest is 100% fully deductible as long as the combined loan values of your 1st and 2nd mortgage do not exceed the value of your home.

Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: www.equityloansource.com and www.militaryvaloan.com



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News about Second Mortgages


The second-mortgage underwriting failure
Ethiopian Review
In case you missed it on Friday, it's worth checking out Tracy Alloway's post about second mortgages in the US. She makes a very good point about how ...




Bank Securitization Woes Only the Beginning
Roubini.com (subscription)
The magnitude of the absolute liability of the mortgage originators to the bond insurers and securitization trusts themselves – on second mortgages alone ...



FreeRateUpdate.com

Effective Comparison Shopping for Home Mortgage Refinance Loan
Brentwood Press
Interest rates are sometimes negotiable – some lenders include a small mark-up in the rate they quote you for a Home Mortgage Refinance or Second Mortgage ...
mortgage rate rises will be less than fearedMozo.com.au
Are Second Mortgages the Achilles Heel of a Housing Recovery?Financial News USA (press release)
Lasting benefits of lower interest ratesMortgage Strategy
Vancouver Sun
all 59 news articles »


Pay Borrowers to Pay Their Mortgage?
Wall Street Journal (blog)
Here's how the program works: The mortgage investor (possibly joining with other risk holders, such as mortgage insurers or second-mortgage holders) offers ...

and more »


Minor sidesteps foreclosure threat
Charlottesville Daily Progress
The company has also made good on a second mortgage taken on the property that went through foreclosure in January and which they bought back at auction for ...

and more »


Are Second Mortgages the Achilles Heel of a Housing Recovery?
Wall Street Journal (blog)
Today's Heard on the Street in the WSJ concisely explains why there's a problem: Second mortgages stand behind the first lien and are supposed to take the ...



Christian Science Monitor

Treasury Delay on Home-Equity Debt Imperils Housing
BusinessWeek
“If I had to name one sticking point, it's the second mortgage,” said Ethan W. Gregory, an agent with First Coast Realty Associates in Jacksonville, ...
Foreclosures could hit 3 million in 2010Avvo
US Treasury Home Equity Agreement Falls Through, Could Lead to More ForeclosuresMy Bank Tracker Bank News
Making Home Affordable Home Loan Mortgage Modification Program— Is It Working ...Red, White, and Blue Press (blog)
Housing Wire
all 303 news articles »


Times Online

Test bench: Living-room headphones
Times Online
You needn't take out a second mortgage to afford decent headphones with a rich, powerful sound. We sound out five pairs Like all the sets on test, ...



Reuters

Ten Things You Should Know About the Super Bowl
Riverfront Times (blog)
... on the Colts' side, I went and pawned all my furniture, half my clothes, and took out a second mortgage on my house to try and maximize my winnings. ...
Indianapolis Colts vs. New Orleans Saints -- Super Bowl should be sensationalESPN

all 16,862 news articles »

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