It protects the lender against loss if the borrower is unable to repay the mortgage. Portability A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty. A transfer fee may apply. Prepayment Privileges Voluntary payments in addition to regular mortgage payments. The amount borrowed or still owing on a mortgage loan.
Interest is paid on the principal amount.
Usually has a shorter term and higher interest rate than the first mortgage. The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender. Title Legal ownership in a property. The changing interest rate determines how much of the payment goes towards the principal.