Minnesota second mortgages
A second mortgage is simply another mortgage taken on a collateral property. It holds the second lien position (a first mortgage holds the first position). The funding of a second mortgage will not affect a first mortgage. HELOCs (home equity lines of credit) and home equity loans are two types of second mortgages. Homeowners take out second mortgages when they need cash for major purchases, home improvements or to fund a new business. You’ll pay a higher rate of interest on a second mortgage than you did on the first, but you won’t be able to borrow as much. Like a first mortgage, a second mortgage will use your home as collateral. Should you default, there’s always the risk that the lender could foreclose.
