Atif has taken out a another mortgage on his principal residence, while still keeping the mortgage he obtained when he purchased the house. This mortgage will be called a:Select one:a. HELOCb. First mortgagec. Line of Creditd. Second mortgage
Question
Atif has taken out a another mortgage on his principal residence, while still keeping the mortgage he obtained when he purchased the house. This mortgage will be called a:Select one:a. HELOCb. First mortgagec. Line of Creditd. Second mortgage
Solution
The answer is d. Second mortgage. When a person takes out a mortgage on a property that already has a mortgage, it is referred to as a second mortgage. The first mortgage is the one that was originally taken out to purchase the property. A second mortgage is usually used to access equity in the home, which can be used for things like home improvements, debt consolidation, or other financial needs.
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