What are the common second mortgage terms?


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.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: