Question by gwizzle2002: What is the difference between a second mortgage and a refinance?
I am financing a pool and was told by the lender that a refinance and a second mortgage are the same thing. Is that correct?
Answer by tonalc1
No. A refinance gives you a new mortgage with a lower interest rate.
A second mortgage is a mortgage taken out on property that already has one mortgage, with priority in settlement of claims given to the earlier mortgage. In other words, you have two mortgages.
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