2nd Mortgage Flow

I thought that the loan is a loan. Buying a home, make your life slaving to pay until they are 80 So what's the problem with the signing of a second mortgage or third or fourth? What does it mean? The magic shield, says: Nothing. A second mortgage is a mortgage on the equity in the property. You buy a house for $ 200 000 The owner put a 40 001 mortgage of 160,000 at the time that the user pays the mortgage is 10,000, and the mean value of the house gain of 50 000 So the house is worth 250,000 and a loan balance is 150,000. You can take a second mortgage, which is 50 000, because the house is worth more, if the owner has more. A second mortgage is usually more expensive (higher interest) because it is a little more risk "in the bank. And" generally cheaper than a traditional mortgage, which is guaranteed by your house) that if you go bankrupt, a house is sold and the two banks trying to recoup their money by selling your home.