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How the Terms Second and Mortgage Come Together for you
from: Deb St. George - HomelessInKingCounty.comMany people know about a first mortgage and how it works. However, do you know how the terms second and mortgage come together to give you even more options in getting money from your home? You can get a second mortgage that will allow you to borrow money from your home equity. It will give you a nice amount of money at one time to use in whatever way you choose.
Why it is called a Second and Mortgage Explained
A second mortgage is called second and mortgage because it is the second mortgage taken on your home. It is also second in line behind the first mortgage for the claim to your home. What this means for you is that you will have two mortgages on your home and be obligated to pay two payments each month.
For the bank, the idea of a second mortgage is a risk. They can not foreclose on your home without the first mortgage being out of the way. Only a first mortgage holder can force foreclosure, so the second mortgage holder must pay off the first mortgage so it becomes the first mortgage.
It can be confusing, but the bottom line is that this is an additionally mortgage on your home that still puts you at risk for losing your home should you default.
Benefits and Uses of a Second Mortgage
A second mortgage allows you to borrow against your homes value. If you have a fair amount of equity built up in your home then you should be able to borrow a nice amount of money. A second mortgage can be very beneficial. You can use it to:
- consolidate debts
- invest the money
- avoid private mortgage insurance
- make home improvements
When deciding why you need the loan you need to take tie to consider this second. And mortgage terms can also be something to consider. Do not just borrow the money to spend it without any thought of the consequences.
What to Watch Our For
A second mortgage is often loaded with high costs. You will pay higher interest than on your first mortgage no matter how good your credit is. You should make sure you understand everything about the mortgage. Make sure you know that you will be able to pay back this loan as agreed.
When you go to get your second mortgage you will be faced with many options. Make sure that you shop smart. You want to bring together second and mortgage to make good financial decisions, not cause financial troubles.
Second Mortgage News
Citi Exits Broker Biz; Fed Addresses Sticky Second Mortgage Situation - Mortgage News Daily
 Daily Mail | Citi Exits Broker Biz; Fed Addresses Sticky Second Mortgage Situation Mortgage News Daily This serves as a message to institutions to keep a careful eye on credit quality indicators relevant to credit portfolios, including junior liens (ie second mortgages, home equity lines of credit). To view the full release, ... White House proposes aid for underwater homeowners White House Press Briefing by Jay Carney, February 1, 2012 Newest mortgage modification program dumb as ever: no cool acronym either |
Goldman to face mortgage debt class-action lawsuit - Moneycontrol.com
 Moneycontrol.com | Goldman to face mortgage debt class-action lawsuit Moneycontrol.com These investors claimed they lost money in the GSAMP Trust 2006-S2, a USD 698 million offering of certificates backed by second-lien home loans made by New Century Financial Corp, a California subprime mortgage specialist that went bankrupt in 2007. Goldman Sachs Faces Mortgage Debt Class-Action Lawsuit Over Misleading Investors Class-Action Lawsuit Against Goldman Sachs Approved |
BofA's Desoer Will Retire After Helping Guide Mortgage Overhaul - BusinessWeek
 Bloomberg | BofA's Desoer Will Retire After Helping Guide Mortgage Overhaul BusinessWeek 3 (Bloomberg) -- Bank of America Corp., the second- biggest US lender by assets, said home loans President Barbara Desoer is retiring after aiding a reorganization under co-Chief Operating Officer David Darnell. Desoer, 58, who has spent 34 years at ... Bank of America home loans president retiring Bank of America's Desoer to retire Bad news for Countrywide MBS investors: LA judge tosses BofA |
Parents Snared in $100 Billion U.S. College Debt Trap Risking Retirement - Bloomberg
 Bloomberg | Parents Snared in $100 Billion U.S. College Debt Trap Risking Retirement Bloomberg With the housing crisis, many families can no longer avail themselves of one popular option for financing university studies: taking out a second mortgage. “A plunge in home prices has erased the equity that many homeowners had just a few years ago,” ... |
The top complaints about mortgages - MSN Money
The top complaints about mortgages MSN Money The government agency received 13210 complaints from consumers in the second half of 2011, more than 9000 of which were about credit cards, according to data (.pdf file) from the CFPB's semiannual operations report. Interestingly, mortgages proved to ... |
Dutch Debt Deduction Threat Seen Undermining Stable Investments: Mortgages - Bloomberg
 Bloomberg | Dutch Debt Deduction Threat Seen Undermining Stable Investments: Mortgages Bloomberg Eliminating or phasing out the deduction will make it harder for homeowners to keep up their payments and may hurt the EUR289 billion ($380 billion) Dutch residential mortgage-backed securities market, Europe's second-largest and most creditworthy, ... |
B of A loses top spot in US mortgage servicing - Reuters
 International Business Times | B of A loses top spot in US mortgage servicing Reuters N) has given up the title of the largest US mortgage servicer, in the latest sign the second-largest US bank is pulling back from the home loan business after its disastrous Countrywide Financial purchase. Wells Fargo & Co (WFC. Wells Fargo Topples Bank of America to Become Largest U.S. Mortgage Servicer |