Comments on: What is the difference between a second mortgage and a refinance?

By: Mr. Wizard

Mr. Wizard — Thu, 02 Oct 2008 12:59:48 +0000

Pretty much: yes. Differences lie (no pun intended) in the intrest percentage charged. And there may be options from the lender to “sell” your mortgage/refinance case to another bank, who then can RAISE the intrest owed.

Check the fine print and ask a trusted investment attorney for laymen’s explanation of any such deals; laws vary from state to state.

In the end, they both meet one end if you default on the deal: you lose your house.

By: mediawhore94561

mediawhore94561 — Mon, 29 Sep 2008 22:11:00 +0000

The LENDER told you that??? You refi your current mortage (usually to a lower oercent and remove some equity to pay for your pool), but you can open a new, seperate SECONDARY mortage to pay for your pool too.

By: Donald G

Donald G — Mon, 29 Sep 2008 01:20:14 +0000

A second mortgage would be a loan in addition to your primary mortgage where your home is the collateral for the loan. A home equity loan could be described as a second mortgage.

A refinance would be getting a new mortgage with new terms. When you refinance, you pay off your prior mortgage and start with a new one.

By: tonalc1

tonalc1 — Fri, 26 Sep 2008 08:35:00 +0000

No. A refinance gives you a new mortgage with a lower interest rate.

A second mortgage is a mortgage taken out on property that already has one mortgage, with priority in settlement of claims given to the earlier mortgage. In other words, you have two mortgages.