What are common types of second mortgages?

Common types include: home equity loans (lump sum), HELOCs (line of credit), and piggyback loans (used at purchase to avoid PMI).

Are second mortgage rates higher?

Usually yes. Second mortgages have higher risk because they are subordinate to the first. Rates are typically higher than first mortgage rates.

When is a second mortgage used?

When you need to borrow against home equity (HELOC, home equity loan) or when you use a piggyback at purchase to avoid PMI.

What Is a Second Mortgage?

Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Introduction

A second mortgage is a loan secured by your home that ranks behind the first mortgage. Common types include HELOCs, home equity loans, and piggyback loans. See HELOC Overview, What Is a Piggyback Loan, and What Is Mortgage Equity.

Frequently Asked Questions

What is a second mortgage?: A second mortgage is a loan secured by your home that ranks behind the first mortgage. If you default, the first mortgage is paid first; the second mortgage is paid from remaining proceeds.
What are common types of second mortgages?: Common types include: home equity loans (lump sum), HELOCs (line of credit), and piggyback loans (used at purchase to avoid PMI).
Are second mortgage rates higher?: Usually yes. Second mortgages have higher risk because they are subordinate to the first. Rates are typically higher than first mortgage rates.
When is a second mortgage used?: When you need to borrow against home equity (HELOC, home equity loan) or when you use a piggyback at purchase to avoid PMI.

Educational Disclaimer

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Housentia is not a lender, mortgage broker, or loan originator.

Second mortgage terms vary by lender.