Question:

What are the common second mortgage terms?

Answer:

Commonly, second mortgage terms come with higher rate than first mortgages to compensate the risk for lenders of being in subordinate lien position to the first mortgage holder. Otherwise, costs and fees associated with second mortgage loans are similar to those of other loans.

Second home loans come in all possible loan flavors - ARMs, FRMs, 100% financing, prime and bad credit second mortgages, etc.

Second mortgages are home equity loans and as such can be taken interchangeably with HELOCs. However, unlike second mortgages, HELOCs's rate adjusts daily but to compensate this, HELOC fees are often reduced and waived.

Second mortgages are currently offered on limited terms due to the high risk they carry to lenders, given the high foreclosure rate.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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