Second Mortgages

Let’s take for instance that your home has an existing mortgage on it, and you take out another loan on your home, the second loan is referred to as the second mortgage to the property.

In real estate, a property can have multiple loans or mortgages against it.  A first mortgage can be followed by a second mortgage, then a third mortgage, and so on as necessary, although having more than two loans on the same property is very rare.  The date on which the homeowner made the loan determines the order of the priority of the loan. This means that in case you default, your first mortgage has priority and it gets paid off first before any amount is put towards the second mortgage.