Sentences with phrase «riskier than a first mortgage»

Is the reason because a home equity loan is basically a second mortgage, so it is riskier than a first mortgage on a property?

Second mortgages are considered riskier than first mortgages since if the property goes into default, the first mortgage holder must be paid first.

Not exact matches

An MIE composed of first mortgages, is typically less risky than an MIE holding second or third sub-prime residential mortgages or construction loans.

Mancini recommends that first - time homebuyers try to qualify for a traditional mortgage loan from a bank or credit union, rather than opt for what could be a risky seller - financed offer.

A first mortgage is the least risky type of mortgage and will have rates that are lower than those of second mortgages.

Second lien mortgage notes are riskier than first liens so they're sold for much less, however, buyers must make sure their investment is covered by the property's equity in case they need to resort to a short sale or foreclosure.