2007-08-26 18:01:46 · 3 answers · asked by sevndustfan 1 in Business & Finance ➔ Renting & Real Estate
You basically borrow against the equity in your home. You then have two mortgages to pay. But, people do it all the time to pay off high interest credit cards, other loans, etc. not a very wise choice, but many people do it. I would look into other ways of getting money before doing this.
2007-08-26 18:09:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It means you would have two mortgage payments. Taking a second mortgage is using equity you have in your homes current value. People do it to make repairs, improvements or pay of credit card debt.
2007-08-27 00:18:54 · answer #2 · answered by Alterfemego 7 · 0⤊ 0⤋
Means they are taking out another loan against the value of their house .
Why ?
To pay for cars , school , vacations , whatever . . .
And a number of people have lost their houses because they borrowed tooooooo much for fancy new cars but couldn't afford to keep up the new house payments .
So they loose the house instead of the car getting repo'd .
Smart people , huh , have nice car and no home to drive it to !
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2007-08-26 18:08:40 · answer #3 · answered by kate 7 · 0⤊ 1⤋