A second mortgage basically refers to a loan with a second-priority lien on a property after another mortgage.
A first mortgage typically uses the property as collateral for the bulk of the borrowed funds to finance the purchase of it.
When a second mortgage comes into the picture, it is usually due to some form of seller financing or any type of credit facilities involving home equity.
An index is an economic or statistical indicator to measure changes in the economy as a whole or specific industries.
As most adjustable rate mortgage base their interest rates on an index plus a margin, the given index figure is known as the index rate.
The total interest rate of home loans consisting of index plus margin is know as the fully indexed rate.
The primary residence is the house, usually specified as a home address, which a borrower will be spending the majority of his time.
In some cases, the mailing address will serve as the primary residence of a borrower if he travels a lot. It’s still the borrower’s home even though he spends most of the time outside it instead of inside.
The gist of the question is “is this house your home?”
A credit report is a data report collated by a credit bureau showing detailed information on a person’s credit behavior.
It must be emphasized that these reports are data-driven and does not make any conclusions about what type of borrower a credit report belongs to.
It just publish facts about borrowing and repaying history.