A second mortgage is a mortgage which is subordinate to the first mortgage. Many people also call a second mortgage a home equity loan or line of credit.

Second mortgages are when you borrow money against the value of your property versus what you owe or in simplier terms the equity which you have in your home.

Equity is determined by the your homes current market value versus the amount still owed on your mortgage. So for example if your home is valued at $85,000.00 and you owe $60,000.00 on your current mortgage you have $25,000.00 in equity, so if you went with a 100% second mortgage you would be receiving a loan in the amount of $25,000.00 (minus any closing fee's, etc.).

Typically second mortgage loan rates are slightly higher than a first mortgage but many times customers who want a second mortgage can refinance with cash back to obtain lower rates. When it comes to refinancing you can refinance your first mortgage, second mortgage, or both.