2nd Mortgage Story

I thought for a mortgage is a mortgage. Buy a house, give their lives as slaves to pay until they are 80 So what's wrong with taking a mortgage, second, third or fourth? What does this mean? Tip of the shell, said: Nothing. A second mortgage is a mortgage on the equity in the property. The buyer of a house $ 200 000. Owner of 40,000 and a loan of 160 000 people in time to pay the mortgage paid 10 000 and say the house is in the value of 50 000 So the house is worth $ 250 000 mortgage loans remaining, 150 000. It may take a second mortgage, for example, 50 000, because the house is worth more, so that the owner has more. A second mortgage are generally more expensive (high speed) because the risk is a bit "more to the bank. Generally less expensive than a direct loan, because it ensures the house), that is, if they go bankrupt , sold the house and the two banks trying to recoup their money by selling your house.