What is a junior mortgage?
A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. The term “second” means that if you can no longer pay your mortgages and your home is sold to pay off the debts, this loan is paid off second.
What is a mortgage form?
A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate. The application is extensive and contains information about the property being considered for purchase, the borrower’s financial situation and employment history, and more.
What does junior financing mean?
Junior Financing means any Indebtedness (other than any permitted intercompany Indebtedness owing to Holdings, the Borrower or any Restricted Subsidiary) that is contractually subordinated in right of payment to the Loan Document Obligations.
What is a junior lender?
Junior Lender means the maker of any Junior Loan or beneficiary of any Junior Loan Deed of Trust.
What do junior loans typically include?
Common uses of junior mortgages include piggy-back mortgages (80-10-10 mortgages) and home equity loans. Piggy-back mortgages provide a way for borrowers with less than a 20% down payment to avoid costly private mortgage insurance.
What expenses go on mortgage application?
You’ll also need to fill in your monthly expenses — both current and proposed — including rent, first mortgage, other financing, hazard insurance, mortgage insurance, real estate taxes, HOA dues and any other fees associated with your residence.
What are the purpose for applying for a mortgage loan?
This is a popular form of financing as it helps the borrower avail a high loan amount and prolonged repayment tenor. A mortgage is usually a loan sanctioned against an immovable asset like a house or a commercial property. The lender keeps the asset as collateral until the borrower repays the total loan amount.
What is the difference between junior and senior debt?
Junior debt refers to bonds or other debts that have been issued with lower priority than senior debt. Unlike senior debt, junior debt is not typically backed by any type of collateral. As a result of these attributes, junior debt tends to be riskier and carry higher interest rates than senior debt.
Does a junior lien affect your credit?
In short, consensual liens do not adversely affect your credit as long as repayment terms are satisfied. Statutory and judgment liens have a negative impact on your credit score and report, and they impact your ability to obtain financing in the future.