What is a Second Mortgage?

A second mortgage is a mortgage loan that is subordinate to a first mortgage on a home. They are sometimes called Home Equity Loan. Second mortgages are available in many different forms and terms. Second mortgages allow borrowers to access the equity in their homes without changing the first mortgage. In many cases the first mortgage has a very low rate or is far enough into repayment that the borrower does not want to start paying a lot of interest. Second mortgage closing costs are typically lower than that of a first mortgage.