What is a second mortgage and how can an owner and a bank or private investor benefit from it?

Question by Jron: What is a second mortgage and how can an owner and a bank or private investor benefit from it?
What situation would an owner use a second mortgage. How does the bank and the owner benefit from it?

Best answer:

Answer by brotherlove@sbcglobal.net
a second mortgage is when an owner has enough equity (market value of home less the first mortgage balance) in their home to take a second loan against the property. owners can benefit because it can give them a low engage loan to make house improvements or meet other financial needs.Lenders can gain because the make money on the loan.

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