An advantage of a second mortgage is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

Question

Quizplus · Accepted Answer

This statement is not accurate. A second mortgage does not involve a home builder subsidy, and its interest rate may be higher than that of the first mortgage. The advantage of a second mortgage is that it allows the borrower to access equity in their home without having to refinance the first mortgage.

An Advantage of a Second Mortgage Is That the Interest