See: Mortgage.
A simple mortgage contract has two participants. There’s the person borrowing money to buy a house...and there’s the lender providing cash through the mortgage.
But like that trip to Paris you and your spouse never talk about, but each of you thinks about all the time, sometimes a third party gets involved. That third wheel here is called a mortgage broker.
A mortgage broker’s job really isn’t that titillating. Mostly they make introductions and fill out paperwork. They operate as intermediaries. The brokers don’t make the loans...they just hook up the parties involved. Think of them as the Match.com of the mortgage business.
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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