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Unformatted text preview: as a down payment when purchasing a home, and theyre great when you need money to fix up your home or send the kids to college. However, they come with costs and risks. With a second mortgage usually comes unfavorable terms or rates. Most second mortgages are adjustable rate mortgages which leave you at risk of increased monthly dues after a certain amount of time. In addition, by taking out a second mortgage you are cashing out your equity, which puts you at risk in case of an unforeseen event where you may be forced to sell your home. Second Mortgage Come Time to Sell If you need to sell your home for any reason, like job relocation, the market price of you home may not be able to cover both your first mortgage and your second. In other words, the amount of debt you owe on the house is more than it is worth. META Description: With a second mortgage, the equity is no longer there to protect you from unforeseen situations....
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This note was uploaded on 03/06/2010 for the course ART 121 taught by Professor Mack during the Spring '10 term at Academy of Design Tampa.
- Spring '10