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Finance: What is a second mortgage? 4 Views
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Description:
What's a second mortgage? Easy: it comes after a first mortgage. Hit play for more details.
- Social Studies / Finance
- Finance / Financial Responsibility
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Transcript
- 00:00
Finance allah shmoop What is a second mortgage Okay you
- 00:07
know what a first mortgages it's otherwise cleverly named what
- 00:12
is called it is called oh yeah Mortgage it's Just
- 00:14
a loan on a house You paid four hundred grand
- 00:17
for this baby Hundred grand down two hundred fifty grand
Full Transcript
- 00:19
in a first mortgage And they're still fifty grand You
- 00:23
owe well where's that fifty large coming from the bank
- 00:27
wouldn't loan you any more on a first mortgage that
- 00:30
was costing you six percent a year Tio you know
- 00:32
to rent that money So you had to get a
- 00:34
second mortgage which should things go awry and you become
- 00:40
a statistic Well that's it's fully behind the first mortgage
- 00:44
in the priority stack of payback So in a bankruptcy
- 00:48
situation the first mortgage first what's called a first mortgage
- 00:52
get it fully paid along with any fees associated with
- 00:55
it and back interest accrued and any other things that
- 00:59
are associated with that first mortgage it stands in line
- 01:02
first in priority Then any cash leftover gets attributed to
- 01:07
that second mortgage So not surprisingly second mortgage money costs
- 01:13
a lot more to rent then first mortgage money because
- 01:16
the risk of non payment in a bad situation is
- 01:20
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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