The mortgage lien is recorded with the county recorder of deeds.
The amount of money loaned on property is often limited by its appraised value. The owner may borrow against the equity in a property already mortgaged with a second mortgage. The second mortgage is often at a higher interest rate. The lender secured by a second mortgage has no claim on the property until the lender secured by the first mortgage has been paid. A second mortgage is often used to secure a home equity loan.
Related Fool Articles
- Balloon payment
- Interest only mortgage
- Loan application
- Loan origination fee
- Mortgage banker
- Mortgage company
- Mortgage service company
- Option ARM
- Retirement of debt
- Second mortgage
- Subprime mortgage debacle
- Teaser interest rate
Recent Mentions on Fool.com
- Has the American Housing Market Fully Rebounded?
- Wells Fargo & Co.'s Secret to Stellar Growth
- The Average American Has This Much Debt -- How Do You Compare?
- How to Solve for Equity Dividend Rate
- The Week Ahead: Goldman Sachs Gathers Financials Together, Consumer Credit
- 5 Ways to Improve Your Financial Life in 2016