|
Author:
Ego Feather Jr.
Web Site: http://www.1st-choice-loans.com
The principal
residential mortgage company has the lien to your home
Though
the “principal” is the employer of an agent or broker but
the term principal residential mortgage refers to the primary or
the first mortgage on your home. In the event of foreclosure
(the procedure whereby property pledged as security for a debt
is sold to pay the debt), the first, primary or principal
residential mortgage takes precedence over the second, junior or
secondary residential mortgage.
In most cases,
the principal residential mortgage provides you with 75% of the
total cost of the home; the interest rate is more favorable to
you as opposed to the rate you may get for your second or third
mortgage; the lien, the legal right or claim upon your property
during the life of the mortgage, stays with the principal
residential mortgage company.
Considering the
difference between the interest rates of a secondary and a
principal residential mortgage, a sound home purchase would be
the one where the buyer can pay 25% down payment without a
second mortgage. For solid information, free advice and rates
consult your online guide available here.
|
