How are 2nd mortgages priced?
For example. Lets say you have a $100k house with a $90k first and a $10k 2nd mortgage. Borrower has an 800 FICO. The 2nd is at 10% interest only, balloon in 5 years. How much would a fresh note like that be worth? How much with 1 year seasoning?
I'm just trying to get a rough idea of how these things are priced.