Finance
In Arizona, a 'second mortgage' differs from a 'home equity loan' in that:
ASecond mortgages are only for first-time buyers
BThey are essentially the same—both are liens subordinate to the first mortgage, secured by the home's equity✓ Correct
CA home equity loan can exceed the property value
DSecond mortgages are always adjustable rate
Explanation
A second mortgage and a home equity loan are essentially the same thing—both are fixed loans secured by a junior lien on the property. The terminology differs but the legal structure is the same: a subordinate lien against home equity.
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