At this time it is extremely difficult to find a bank that is offering a straight forward mortgage much less a 2nd mortgage. Banks are simply not lending. Most individuals, couples, or entities that currently have a 2nd mortgage have had their available balance suspended, revoked, or otherwise made inaccessible.

2nd Mortgage – A 2nd Mortgage is often a Home Equity Loan or Home Equity Line of Credit (HELOC) both of which are discussed in their own sections. The 2nd Mortgage can be a Fixed Rate Mortgage, Adjustable Rate Mortgage, or a Home Equity Line of Credit all with their differing interest rate characteristics. In the event of default on a home with both a primary and 2nd Mortgage, upon fund recovery the primary mortgage is paid first leaving the 2nd Mortgage with whatever (if anything) is left. As a result, a 2nd Mortgage will often have a higher interest rate than a primary mortgage (with the exception of the adjustable rate 2nd which will often have lower interest rates much like an Adjustable Rate Mortgage).

At a time, not long ago, when mortgage companies still offered a rational second mortgage; 2nd mortgage value was offered at 80% of the total value of the property.

During the height of the Mortgage craziness, 2005 to 2008, many 2nd mortgages were offered at 100% of the total property value. With some even offering as much as 125% of the total property value! This irresponsibility by mortgage lenders coupled with the fact that many never verified the individual, couple, or entities ability to repay the 2nd mortgage loan, were large contributing factors to the mortgage meltdown.

At one time, the 2nd mortgage was only used by individuals, couples, or entities that found themselves in financial difficulty, and its use was viewed with disdain.

The following links will take you to the website of Jack Guttentag also know as the Mortgage Professor. Jack is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania, he has written a number of books on mortgage related issues, and his website, The Mortgage Professor’s website, can be a very informative source for mortgage advice and council.

Explore the option of converting two mortgages into one - Debt Consolidation Calculator

Should you refinance your two mortgages into one new mortgage? or refinance them into two new mortgages? this calculator will help you decide - Calculator for refinancing two mortgages

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