Second mortgages are considered
riskier than first mortgages since if the property goes into default, the first mortgage holder must be paid first.
Is the reason because a home equity loan is basically a second mortgage, so it is
riskier than a first mortgage on a property?
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.