What Is ‘Second Mortgage’? It is home equity loan. A home equity loan requires that you use your house for
collateral just like a normal home loan. There are different types of home equity loan out there and you can always use the money for whatever you want.

The amount you can get from this load depends on factors such as how much your home is worth, your income, and credit score. A closed end loan usually comes as a fixed rate type and allows you up to 15 years to pay it off. An open ended home equity loan is a little different. This loan will let you borrow money whenever you have a need for it.

It is called second mortgages because you are adding yet another loan payment that uses your house as
collateral and adding another monthly payment. Though tempting, it can cause you a lot of problems in the future. So be carefull!!!