What is second mortgage?

Written by Ajay Pats

What is a second mortgage?

A second mortgage is a loan that is secured byrepparttar home itself, and subordinate torepparttar 100113 first mortgage. Any mortgage taken out against a home in addition to an already established mortgage automatically becomes a second mortgage.

Asrepparttar 100114 name implies, second mortgages are secondary to first mortgages. This means ifrepparttar 100115 homeowner is forced into foreclosure,repparttar 100116 second mortgage holder will receive no proceeds fromrepparttar 100117 sale ofrepparttar 100118 home untilrepparttar 100119 first mortgage has been completely repaid.

Characteristics of a typical second mortgage: Sincerepparttar 100120 lender's risk is higher, second mortgage loans carry a higher interest rate than first mortgage loans. Second mortgages are typically shorter in duration (usually 15 years or less). A second mortgage may require a "balloon" payment atrepparttar 100121 end ofrepparttar 100122 repayment period. This one is a biggie:repparttar 100123 interest paid on a second mortgage is tax deductible in most circumstances!

Primary types of second mortgages:

Home equity loan - This isrepparttar 100124 traditional type of second mortgage. There is a one-time disbursement ofrepparttar 100125 loan funds (in a single check) followed by a period of regular monthly payments and a fixed interest rate.

Home equity loans are often used to consolidate debts, remodelrepparttar 100126 home, fund a college education, purchase a big ticket item such as an RV, or most anything that requires a large amount of cash. Line of credit - This type of second mortgage is very different from a home equity loan. With a line of credit, you don't receive a large check forrepparttar 100127 full amount up front. You may never even borrow any actual money from it at all!

The interest and payment on a line of credit second mortgage can and does change periodically. The interest is typically tied torepparttar 100128 prime rate. The actual interest rate will berepparttar 100129 prime rate + a certain number of percentage points.

(New construction windows or replacement windows? Which is right for you?)

Written by John Rocco

(New construction windows or replacement windows? Which is right for you?)

Hello, my name is John Rocco.I grew up aroundrepparttar window and door business. My father owned a glass shop that dealt in every aspect of residential and commercial glass.Naturally, when it came time to choose a profession, i wound up inrepparttar 100112 window and door business. I have been inrepparttar 100113 business for about 27 years, and i have been self employed for 20.One ofrepparttar 100114 things that seperated my company from my competitors was my willingness to show my customers how to replace their windows themselves. Whenever i would encounter a customer with a curiosity or willingness to learn how to install their own windows,i would offer to sell themrepparttar 100115 labor on one window,using them as my helper.Then,they would installrepparttar 100116 rest ofrepparttar 100117 windows usingrepparttar 100118 knowledge gained from helping me install one.Most window companies would never do this because there is so much money made onrepparttar 100119 labor.But i was always so busy,i never felt like it was costing me money.Eventually, i made an installation video for those homeowners who wanted to do their own windows.Whilerepparttar 100120 video is for sale on my website, i decided to take excerpts fromrepparttar 100121 video and write an article once a week covering some part ofrepparttar 100122 window replacement project.This article is going to coverrepparttar 100123 difference between window frames used in new construction homes, andrepparttar 100124 window frames that are used to replace existing aluminum or wood windows.

When a new home is being built,the windows are nailed torepparttar 100125 wood studs that make uprepparttar 100126 house frame.In order to accomplish this, new construction windows have a fin around all four sides ofrepparttar 100127 frame that rests againstrepparttar 100128 outside ofrepparttar 100129 stud, and nails are driven intorepparttar 100130 studs throughrepparttar 100131 nailing fin. After that,flashing paper is applied to prevent water leaks, thenrepparttar 100132 exterior, material is applied. That material can be stucco, brick, siding, etc.Now, imagine 10 or 20 years later when you want to replace those

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