What is Mortgage?

Generally through the word mortgage we understand a long term home loan. It is actually the biggest debt that we can have. We use the property as the collateral of the mortgage loan. You can avail mortgage loan from a Government guaranteed Institute or any other Private mortgage loan institute but it is better to chose a government insurance mortgage institute to buy your dream home.  

 Different types of mortgage loan:

There are different types of mortgage loan available in the market. for example…. 
1. Fixed Rate Mortgage
2. Adjustable Rate Mortgage
3. Balloon Mortgage
4. Interest Only Mortgage
5. Biweekly Mortgages
6. Bimonthly Mortgages 
So if you want to buy your dream home and you think you can really afford it then just go for a detailed market research. Talk to different lenders and different lending institute. Choose the lender who is willing to educate you regarding  your home buying and offer you the best rates and terms in the market. After consulting to a few lenders you will understand which type of mortgage suites you the best and choose a mortgage loan which you can really afford. Please don’t try beyond your limits. Have a Happy Home buying. Feel free to ask any questions and share your suggestions. 

 2nd Mortgage

A 2nd Mortgage is a secured mortgage loan taken against your property. This is an additional loan where already the primary mortgage exists. If you default on the mortgage, then you will have to pay your primary mortgage loan first but you are also obliged to pay the second mortgage as this is a secured mortgage loan. If you default on the 2nd mortgage then the 2nd mortgage lender can also declared foreclosure and sell your property to get his money back. 
The Interest rate of the 2nd mortgage is generally higher than the first mortgage. So it is very very important for you to judge whether you can afford the mortgage payments or not. If it seemed that the interest rate is higher and you cannot afford an additional mortgage payments of the second mortgage, then it is better to avoid it, but 2nd mortgage is a great option to get quick cash when it is most needed link if you want to pay your medical bills or your child’s college fees.   
 So before going for a second mortgage loan, do a detailed market research and find out who can provide you the best rates and terms in the mortgage market. 

  How Does a Second Mortgage Work?

A second mortgage works as a secondary mortgage loan. A Second mortgage is not the Primary mortgage. It is actually the subordinate to the First mortgage. This is also known as Home Equity Loan. Generally the interest rate of the second mortgage is comparatively higher than the first mortgage. The 2nd mortgage also goes through the similar process like the first mortgage.

A second mortgage is also a secure loan as the loan amount is secured against your home equity and the lender can foreclose your property if you default on your mortgage payments. But he will get paid only after the first mortgage lender gets paid. So the second mortgage lender can buy out the first mortgage lender and foreclose the property. 

 When should you go for Second mortgage or 2nd mortgage loan?

 If you are in need of some immediate cash then second mortgage is a really a very good option to opt for. You can invest the cash in your business or pay the medical bills pay your child’s tuition fees or college fees. 

 How can you get a second mortgage?

The procedure of getting a second mortgage is similar to the first mortgage. So you should shop for the lender to check out who can give you the best rates ad terms. You will have to pay the closing cost too to get the Second mortgage. But before for the second mortgage think twice whether you can afford the mortgage payments or not.