Finance
A Colorado 'second mortgage' or 'junior lien' is typically characterized by:
AA. A lower interest rate than the first mortgage
BB. A higher interest rate than the first mortgage, as the lender takes a subordinate lien position with more risk✓ Correct
CC. Priority over the first mortgage in foreclosure
DD. Government guarantee like an FHA loan
Explanation
Second mortgages carry higher interest rates than first mortgages because the second lien holder is in a subordinate position — they are only paid after the first lien holder in a foreclosure. The greater risk of loss justifies the higher rate.
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