Can you refinance a first mortgage when you have a second?
First and second mortgages both place a lien, or claim on your home. In a foreclosure, liens are paid off in the order of seniority; if you refinance, the refinanced first-mortgage lien would be junior to the home equity loan's lien.
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by Johanna K.
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About Second Mortgage
A second mortgage typically refers to an additional loan on property that is already mortgaged. Second mortgages are often assumed in order to provide funds for starting a business or other ventures.
About Home Equity Loan
In a home equity loan, the borrower uses the equity in their home as collateral. It's used as a form of insurance for the lender.
About Home Equity
Home equity is the financial value of a home, minus the amount that is owed for the mortgage. If the mortgage is entirely paid off, then the homeowner's home equity equals the entire market value of the home. If money is still owed on the mortgage, home equity is equal to the market value of the home minus the amount the homeowner still owes on their mortgage.
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