Second Mortgage
A second mortgage is a loan secured by the same home as the first mortgage but in a subordinate lien position.
What Second Mortgage means
It includes HELOCs, home equity loans, and piggyback loans. In a foreclosure, the first mortgage is paid before the second, which is why seconds carry higher rates.
Florida example
A Florida homeowner takes a second mortgage to fund a remodel while keeping a low-rate first loan in place. The second sits behind the first in priority if the home is ever sold under distress.
What it is
A second mortgage is a loan taken against your home while a first mortgage is still in place. It sits behind the first in priority.
Home equity loans and HELOCs are common types.
Why use one
A second mortgage lets you tap equity without touching your first loan's rate. It is useful for big costs or debt payoff.
We compare a second mortgage against a full refinance. Apply now and we will find your cheaper path.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB home equity loan guide and CFPB Owning a Home guide.