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August 26, 2006
Why Second Mortgage Rates Are Higher for Home Equity Loans than 1st
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't paid and there is a foreclosure on the property, the first lender is paid off before the second lender. As a result, second mortgages entail more risk for the lender. To offset the risk, lenders charge higher interest rates for second mortgages than for first
From Why Second Mortgage Rates Are Higher for Home Equity Loans than 1st
Posted by Jason at August 26, 2006 04:29 PM
