Home Equity Loan
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| Ranch style home |
A second mortgage typically refers to a secured loan (or mortgage) that is referred to as a home equity . Second mortgages are subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage. A second mortgage simply means a loan that is secured by the equity in your home. When you obtain a second mortgage loan the lender will place a lien on your house. This lien will be recorded in 2nd position after your primary or 1st mortgage lender's lien, hence the term second mortgage.
