A Guide to Second Mortgages: How They Work and What They Offer
A second mortgage enables individuals to borrow against the equity they have in their homes. It is called a "second" mortgage because it is in addition to the primary mortgage on the home. Also known as caveat loans or caveat advances, these loans are typically used when a borrower needs quick access to funds but needs help to obtain financing through traditional lending institutions. The term "caveat" refers to a legal notice that is placed on the borrower's property title, notifying any potential buyers or lenders that there is an existing loan against the property.
In this article, we will explore how second mortgages work, what they offer, and how they can benefit homeowners.
Understanding Second Mortgages
Equity is the difference between the value of the home and the outstanding...