My friend said her house is fully paid off, there is no mortgage left to pay, but she needs to take out a second mortgage to get approved for a loan or something like that.
What is a second mortgage? How do they work?
In: Economics
It’s just another loan, with your house as the collateral. If you own your home, a lot of your wealth is the home itself, which means you can’t use that wealth to pay for things. A 2nd mortgage converts some of that wealth from property into cash so you can spend that wealth.
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