Interest rates on a 2nd mortgage
Its interest rate is based on Prime rate, which is very low right now. So the rate may be lower than you would pay on a conventional mortgage. What are today’s second home mortgage rates Because they are second liens, 2nd mortgage rates run a bit higher than what lenders charge for a primary home loan. Because the primary lien gets paid off first in the event of a default, a second mortgage is somewhat riskier for lenders, so the rate is different. Second mortgage rates can be either fixed or adjustable. Second mortgages are loans against your home taken out after your primary home loan (your first mortgage). Thy can be a great source of cheap money, but things can go wrong. Here's what to watch