A mortgage loan taken out on property that already has one mortgage, with priority in settlement of claims given to the earlier mortgage. |
Second mortgage loans are often considered to be a very risky type of loan. This is due to the fact that second mortgage loans are the subordinate loans, meaning if the homeowner defaults on the loan, the first mortgage loan gets payment priority. Because of the risk factor, second mortgage loans are often charged a higher interest rate.
A Risky Investment
When it comes to second mortgage loans, the general rule is to only buy what you can afford. With a second mortgage loan, you run the risk of putting yourself into a deeper debt which could create more of a risk than a return. Second mortgage loans are usually considered for investing purposes only. Even with generally higher interest rates, East West Mortgage helps ease the pain by offering our second mortgage loans are great affordable rates to ensure that your investment yields a return profit. For the most accurate advice, seek the help of a loan officer, often they are more than willing to help homeowners find the information they need.
With customer satisfaction as our main priority, we assure you that your housing needs will be met. East West Mortgage has been in the mortgage industry for over 20 years, helping home owners across the nation with an affordable solution to their housing needs. As one of the largest mortgage brokerages in the nation, we understand that it takes a balance of quality customer care as well as low mortgage rates to satisfy homeowners. If you have any questions regarding a second mortgage loan, feel free to try ours out or call one of our loan officers to get started today!
