Fixed 2nds

Fixed 2nd Mortgages

A fixed second mortgage refers to a home loan in the  second lien position that has a fixed rate of interest. Because of the lien position, this type of loan has more associated risk than first mortgages and therefore has a higher rate of interest associated with it. An advantage of this type of mortgage is it allows the homeowner to cash out equity while securing a fixed rate and monthly payment, all the  while leaving their first mortgage in place unchanged.   Another application is to use this product in combination with first mortgages to secure higher loan to values while avoiding mortgage insurance. Not a program to be overlooked when looking to tap equity or purchasing properties whose sales prices falls outside of conforming loan limits.  Make sure to discuss this with you loan consultant.