Investor Glossary-2nd mortgageInvestor Glossary-2nd mortgageInvestor Glossary-2nd mortgageInvestor Glossary-2nd mortgageInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

2nd Mortgage

The HTML to link to this page
 

A 2nd mortgage is any property loan which is placed secondary to a first mortgage. In case of default the 1st mortgage is paid first and the 2nd mortgage is only paid if there are sufficient remaining funds. A 2nd mortgage is often called an equity loan and the amount of a 2nd mortgage is often tied to the amount of equity available in a property. The formula for determining the amount of a 2nd mortgage varies from one lender to another and some 2nd mortgage loans can be for amounts greater than the property's existing equity. A 2nd mortgage may be either a fixed dollar amount at a fixed interest rate for a fixed period of time, much like a 1st mortgage, or a 2nd mortgage may be a "home equity line of credit." As a line of credit the funds from a 2nd mortgage are accessed and interest is paid only as funds are needed, much like a credit card.



Rate this 2nd mortgage definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use