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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


Wall Street Pit (blog)

Frank Wants Banks to Write Down 2nd Mortgages
Atlantic Online (blog)
These second liens have posed a big challenge to the modification push. Underwater borrowers probably can't pay their second mortgage if they can't pay ...
Second mortgage write-downs coming?FierceFinance
Home-Saving Loans AfootWall Street Journal
Stress tests underwaterEconomist (blog)
Minyanville.com -Credit Loan (blog) -BankInvestmentConsultant.com
all 27 news articles »


BigNews.biz (press release)

Second Mortgage Trouble—Should Wells Fargo Homeowners Look To Short Sell?
Red, White, and Blue Press (blog)
Second mortgages, or second liens, have caused trouble in the home loan modification program, as well as short selling, for lenders like ...
Government Could Cut Seconds FirstWall Street Journal
New Treasury Program to Encourage Short SalesAtlantic Online (blog)
Program Will Pay Homeowners to Sell at a LossNew York Times
NPR (blog) -WalletPop (blog) -HeraldNet
all 106 news articles »


Mortgage troubles, even after losing in foreclosure
Minnesota Public Radio
The foreclosure wiped out the debt on the big first mortgage. But he's still on the hook for what he owed on the second mortgage, plus interest and fees, ...



The fake stress tests and the coming wave of second mortgage writedowns
Before It's News
About a month ago I wrote a post called “The coming wave of second mortgage writedowns†the gist of which was that the big four banks (Citi, JP, BofA, ...



Richmond Times Dispatch

Obama Plan To Modify Second Mortgages Has Yet To Help One Homeowner
Huffington Post (blog)
Nearly a year after the Obama administration announced a plan to help up to 1.5 million struggling homeowners modify their second mortgages, not a single ...
Modification Program—Bank of America Underwater Homeowners Struggle With ...Red, White, and Blue Press (blog)
Mortgage loan modifications are hard to getRichmond Times Dispatch
Loan Modifications Lead to Fewer Mortgage Insurance Claims: ReportDSNews.com
Red, White, and Blue Press (blog)
all 30 news articles »


Treasury's Barr: Redoubling Push For Financial Overhaul
Wall Street Journal
While lenders may be willing to modify a mortgage to make the terms more affordable for the borrower, holders of second mortgages or a home-equity loan have ...

and more »


March foreclosures near record
Newnan Times-Herald
... pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens. ...



Credit.com News

Renovate Your Home With a Second Mortgage
LoanSafe
This type of mortgage is very common for homeowners looking to fix up their home and get a loan with a very low interest rate. These second mortgage home ...
Home Loan Modification Lenders Look To Continue Increase In Mortgage ModificationsRed, White, and Blue Press (blog)

all 51 news articles »


eCreditDaily.com

New Short Sale Push May Speed Up Bank Loan Losses
Wall Street Journal
Borrowers won't be on the hook if the home is sold for less than the value of the first mortgage. If the holder of the second mortgage gets an incentive ...
HAFA Provides Foreclosure AlternativesMortgage Rates & Trends (blog)
Short sales become foreclosure alternative | Philadelphia Inquirer | 03/11/2010Philadelphia Inquirer
Obama Short Sale Plan Avoids Foreclosure with Less DebteCreditDaily.com

all 21 news articles »


The Guardian

Home Loans: Take Advantage of Lower Rates through March
Credit Loan (blog)
If you have a second mortgage, you can roll that in and create just one mortgage payment per month. This can create tremendous savings over the long haul; ...
US MBA Mortgage Applications Index Rose 0.5% Last WeekBusinessWeek
What mortgage can I get on a rental home?The Guardian
Are Too Many Homeowners In Need In Bank Of America Home Loan Modification ProgramRed, White, and Blue Press (blog)
Forex Pros -Mortgage Rates & Trends (blog) -HULIQ
all 135 news articles »

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