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When mortgage money is plentiful, lower down payments are common and lending institutions are looking for borrowers for mortgage money.
However, the picture changes when money is tight. Often, higher down payments are required. If you do not have the cash to meet the full down payment, second mortgages are also available and nothing to be afraid of. The seller or some other lender may agree to loan you the balance of the down payment in this manner.
The second mortgage on the property carries a higher interest rate and a shorter repayment time - usually from three to five years. The reason for this
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