Why Second Mortgage Rates Are Higher for Home Equity Loans than 1st Mortgages

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Why Second Mortgage Rates Are Higher for Home Equity Loans than 1st Mortgages
(presented by www.refinance-refinance.net - mortgage lenders)

By Maria Ny

Home equity is the difference between what you owe on your mortgage and the fair market value of your home. Cashing out on home equity for debt consolidation is continuing to gain popularity. The typical way to cash out on home equity is to either refinance an existing first mortgage or take out a second mortgage.

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Many people wonder why the interest rates for second mortgages are higher than those for first mortgages. The reason for this is a second mortgage is a subordinate loan secured by the same property as the first mortgage. Thus, if the mortgage isn

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This entry was posted on Saturday, August 26th, 2006 at 5:45 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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