If you have two mortgages registered against your property and you decide to get another mortgage to pay off those first two, what would the rank be of this new mortgage?Select one:a. HELOCb. Line of Creditc. Second mortgaged. First mortgage
Question
If you have two mortgages registered against your property and you decide to get another mortgage to pay off those first two, what would the rank be of this new mortgage?Select one:a. HELOCb. Line of Creditc. Second mortgaged. First mortgage
Solution
The rank of the new mortgage, which is used to pay off the first two mortgages, would be a first mortgage. This is because when the new mortgage is used to pay off the first two, those are effectively cancelled out, making the new mortgage the primary or first lien against the property. So, the correct answer is d. First mortgage.
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