Because banks or small lending institutions are under great pressure, the loan interest rate is often very high when handling secondary mortgages, and the loan interest rate is calculated on a monthly basis. Under normal circumstances, the monthly loan interest paid by the second mortgage is about 5% of the loan amount.

2. There is no negotiation in the repayment process.

In two mortgage, banks are particularly strict in the repayment process. In the process of repayment, once the borrower fails to repay, the bank or small loan company will immediately auction the collateral for the second mortgage without giving the mortgagor a chance to negotiate. Therefore, applicants must pay attention to the repayment time.

3. The amount that can be applied for is not high.

Extended data

Secondary mortgage refers to re-mortgaging the mortgaged property and obtaining loans from specific lenders. The characteristic of secondary mortgage is that you can get a loan again without paying off the previous loan, which saves time and the cost of prepayment.

For example, suppose a property has been mortgaged in the bank and is still being repaid normally. In this case, if the owner applies for a mortgage loan again, there is no need to pay off the bank loan in advance. As long as he can pass the professional evaluation, he can re-mortgage according to the evaluation value.

quota

The applicant only needs to go through the mortgage registration formalities once to realize the maximum mortgage loan. After obtaining the maximum loan amount, the loan can be withdrawn by stages as needed, and the interest calculation time is based on the actual payment time of each payment. This can save a lot of unnecessary interest costs. Maximum mortgage is essentially a kind of mortgage. Generally speaking, commercial banks provide the highest amount of mortgage loans in China.

Balance mortgage

Secondary mortgage belongs to balance mortgage. According to the provisions of the Property Law, as long as there is a balance in the value of the property after the first mortgage, a second mortgage or a third mortgage can be made. At present, the common forms of balance mortgage in China are generally five-color soil mortgage, pawn mortgage or professional loan company mortgage.

References:

Secondary mortgage-Baidu Encyclopedia