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
- Wells Fargo's Mortgage Business Is Getting Even Bigger
- The Average American Is Becoming More Financially Fragile. Here's How You Could Fix That
- 5 Ways to Slash Your Tax Liability in Retirement
- Exotic Mortgage Loans Are Making a Comeback: Should We Be Worried?
- 3 Things Wells Fargo Wants You to Know
- Bank of America Earnings: 3 Things to Watch