Which of the following is most accurate about second mortgages?
A)Most people have two mortgages on their homes.
B)The primary mortgage is for the down payment and the secondary mortgage is the main mortgage.
C)A home equity loan is commonly a second mortgage.
D)Second mortgages are last resort financing.

Question

Quizplus · Accepted Answer

A home equity loan is a type of second mortgage that allows homeowners to borrow against the equity they have built up in their home. This is a common use of a second mortgage, although not everyone has one. B and D are not accurate statements about second mortgages. A may be true for some homeowners, but it is not a general truth about second mortgages.

Which of the Following Is Most Accurate About Second Mortgages