{"id":20416,"date":"2026-06-05T02:00:29","date_gmt":"2026-06-05T09:00:29","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=20416"},"modified":"2026-06-05T07:34:18","modified_gmt":"2026-06-05T14:34:18","slug":"buyer-what-is-a-second-mortgage","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-what-is-a-second-mortgage\/","title":{"rendered":"What is a Second Mortgage? Your Comprehensive Guide to Home Equity Loans"},"content":{"rendered":"

Your \u201970s bathroom seemed amazing and hip when you bought the house. However, now that the novelty has worn thin, the cultured marble vanity needs to go, along with the avocado-green toilet and bathtub. You can\u2019t wait to shower in a spa-like setting with clean tiles and a double sink to save your marriage. However, you don\u2019t have the funds readily available<\/a> right now for a big renovation. So, how can you find the money to do this life-changing home improvement?<\/p>\n

One popular option for financing home renovations and other expensive lifestyle needs is called a second mortgage. But you need to know all the ins and outs before taking on another loan because you could be signing up for a house-poor future, or even foreclosure.<\/p>\n

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Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.<\/p>\n \n

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What is a second mortgage?<\/h2>\n

A second mortgage<\/a> is a second secured loan that you can take out as a homeowner, using your house as collateral. As its name indicates, the second mortgage is in a secondary lien position behind your primary, or \u201cfirst mortgage.\u201d That means that if you were to default on your mortgage and your home goes into foreclosure<\/a>, your first mortgage gets paid from the foreclosure sale first, and the second mortgage only gets paid off if there are sufficient proceeds remaining from the sale after<\/em> the first mortgage is paid.<\/p>\n

\u201cMost second mortgages offer shorter loan terms, usually 10 or 15 years,\u201d says Richard Monley<\/a>, Vice President of the Retail Lending Division of Hawthorn Bank in Lee\u2019s Summit, Missouri. Monley formerly served as president of the Mortgage Bankers Association of Greater Kansas City.<\/p>\n

He explains that the interest rate can be fixed or adjustable. Adjustable rates typically start out lower than fixed rates but will go up after a certain period of time. Rates on second mortgages also normally start higher than a first mortgage rate<\/a>, partially because the lender will not earn as much interest income over the shorter-term life of the loan, but primarily because there is higher risk attached to a second mortgage.<\/p>\n

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When can you get a second mortgage?<\/h3>\n

There are two scenarios where you can get a second mortgage:<\/p>\n