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


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