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Second mortgage lending |
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Second mortgage lendingLoans secured by real estate previously pledged in a first mortgage.Second mortgage lending Similar MatchesReverse annuity mortgages (RAM)Reverse annuity mortgages (RAM)Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity. Package mortgagePackage mortgageA mortgage on a house and property in the house. Open End MortgageOpen End MortgageA mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions, usually as to the assets of the mortgage. Multifamily mortgageMultifamily mortgageA mortgage on a multifamily dwelling with more than four families, typically an apartment building. Repayment mortgageRepayment mortgageA mortgage where throughout the term, regular payments (usually monthly) are made to partly repay interest on the capital and to partly repay the capital itself (the amount of the loan).Initially the largest proportion of the repayments will be used to pay interest since the capital amount outstanding is at its highest value. Therefore over the initial years the capital will not reduce very much. However as the years proceed more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.In the event that interest rates rise then often the monthly repayments will rise accordingly. Alternatively, to keep the same monthly repayments the term will need to be extended. If interest rates fall then the reverse applies. It is usually a requirement of the lender (that is, a building society or bank) providing the mortgage that the borrower takes out life assurance so that repayment is made in the event of his/her death during the term. Further SuggestionsGnma (government National Mortgage Association) Optionsmortgage broker Reverse mortgage Senior mortgage bond Adjustable rate mortgage (ARM) Mortgage deed One hundred percent mortgage Stepped fixed rate mortgage Mortgage advance Wraparound mortgage Mortgagee mortgage agreement in principle H Hard Money Mortgage Mortgage Insurance Flexible mortgage senior mortgage bond General Mortgage Bond Biweekly mortgage Cap & collar mortgage Graduated Payment Mortgage Blanket mortgage Self build mortgage Variable rate mortgages Owner Will Carry Mortgage Mortgage interest deduction |
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