I would like to know more about taking a third mortgage, because I am planning to take a 3rd mortgage. There are 2 pending home loans, but now, since I am in need of more funds for my daughter’s educational expenses. A third mortgage is an additional loan taken out on a property that already has two mortgages against it. I do have a good credit score. I got some info here, http://www.privatelend.com/private-mortgages/third-mortgage/ . I want to know, do taking third mortgage cancel out the first and second mortgage ? and, what else do I need to know about third mortgages?
Fri Feb 03, 2017 7:36 am
oldguy Senior Member
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quote: do taking third mortgage cancel out the first and second mortgage
No, you will have all three loans.
If you use mortgages, the total amount is limited by the value of your house.
A couple other options -
1. Rather than a third loan, you could refi your second mortgage (just to kep things simple)
2. Rather than collateralizing more of you house, you could get a Student Loan.
Disclosure: I'm in the USA, don't know if it's the same in Canada.