Which of the following statements is/are TRUE regarding a \"second mortgage\"? C

Question

Which of the following statements is/are TRUE regarding a "second mortgage"? CIRCLE ALL THAT APPLY 5. (2 points) A second mortgage is an unsecured loan obtained by a person who has paid off their original mortgage. When a homeowner sells the house, the sale proceeds must be used to pay off the second n proceeds. A second mortgage allows a homeowner to extract some of the equity they have built up through making principal payments on their first mortgage over a long period of time. The cost of obtaining a second mortgage is typically higher than refinancing the first mortgage. a. b. c. d.

Explanation / Answer

c and d are true

2nd mortgage is unsecured but it is taken when the fist mortgage is already running anf taps the home equity i order to get the mortgage.

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