| A second mortgage is a loan that is secured by the | | | | used for just about anything. Many consumers take |
| equity in your home. When you obtain a second | | | | out 2nd mortgage loans to consolidate debt, do home |
| mortgage loan the lender will place a lien on your | | | | improvements or pay for their kids college education. |
| house. This lien will be recorded in 2nd position after | | | | Whatever you decide to do with your loan proceeds it |
| your primary or 1st mortgage lender's lien, hence the | | | | is important to remember that if you default on your |
| term second mortgage. | | | | payment you can lose your home so you will want to |
| A second mortgage is also sometimes referred to as | | | | make sure that you are taking the loan out for a |
| a home equity loan. There is no difference between a | | | | worthwhile purpose. |
| home equity loan and a second mortgage. These are | | | | Another plus of a second mortgage loan is that the |
| just two different terms for the same subject. | | | | interest you pay back on the loan may be tax |
| A second mortgage can either be a fixed-rate loan or | | | | deductible. Consult your tax advisor regarding your |
| an adjustable-rate credit line. Interest rates and loan | | | | personal situation but in most cases the interest is |
| program terms will vary from lender to lender so it is | | | | 100% fully deductible as long as the combined loan to |
| important to shop around and compare before | | | | value of your 1st and 2nd mortgage do not exceed |
| committing to any one offer. | | | | the value of your home. |
| Loan proceeds from a second mortgage loan can be | | | | |