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Finance allah shmoop What is a second mortgage Okay you

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know what a first mortgages it's otherwise cleverly named what

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is called it is called oh yeah Mortgage it's Just

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a loan on a house You paid four hundred grand

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for this baby Hundred grand down two hundred fifty grand

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in a first mortgage And they're still fifty grand You

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owe well where's that fifty large coming from the bank

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wouldn't loan you any more on a first mortgage that

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was costing you six percent a year Tio you know

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to rent that money So you had to get a

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second mortgage which should things go awry and you become

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a statistic Well that's it's fully behind the first mortgage

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in the priority stack of payback So in a bankruptcy

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situation the first mortgage first what's called a first mortgage

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get it fully paid along with any fees associated with

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it and back interest accrued and any other things that

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are associated with that first mortgage it stands in line

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first in priority Then any cash leftover gets attributed to

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that second mortgage So not surprisingly second mortgage money costs

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a lot more to rent then first mortgage money because

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the risk of non payment in a bad situation is

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meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living

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