I am financing a pool and was told by the lender that a refinance and a second mortgage are the same thing. Is that correct?
2006-07-03 08:44:12 · 4 answers · asked by gwizzle2002 1 in Home & Garden ➔ Other - Home & Garden
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.
2006-07-03 08:49:18 · answer #1 · answered by Anonymous · 1⤊ 0⤋
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.
2006-07-03 08:49:19 · answer #2 · answered by Donald G 1 · 0⤊ 0⤋
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.
2006-07-03 08:49:47 · answer #3 · answered by Mr. Wizard 7 · 0⤊ 0⤋
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.
2006-07-03 08:49:43 · answer #4 · answered by mediawhore94561 1 · 0⤊ 0⤋