Why Interest Rate of Second Mortgage Loans is Higher Than 1st Mortgage?

 

The reason is the 2nd mortgage loan is typically a secondary mortgage you take out, while the first mortgage is still in effect. But in case of any default, the first mortgage will primarily receive payment from the liquidation of the property. That is why the second mortgages involve more uncertainty than the first mortgages, especially for the lenders. Click To Read More.