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Credit card companies have a policy of applying your payments to the balance with lowest APR. Confused? Let's take up a scenario. Let's say you already have a balance of $350 on your free marketing material mortgage and your purchase APR is 15%. Now, you make a balance transfer of $2,000 on your card for 0% APR. Now the monthly payments that you make, they will apply completely towards those $2,000 that you free marketing material mortgage The balance of $350 from the purchase stays on accruing interest on that at the rate free marketing material mortgage 15% APR. This also suggests that you should not use the same card to make any purchases after you make a balance transfer using that card. The reason is the same as explained above. Any monthly payments that you make is going towards your balance transfer letting the purchase balance to accrue interest at a higher APR, so you should never make a balance transfer on your card unless the free marketing material mortgage is zero. A second mortgage is a secured loan (or mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence. In real estate, a property can have multiple loans against it. The loan which is registered with free marketing material mortgage or city registry first is called the first mortgage. The loan registered