Definition - What does Second Mortgage mean?
A second mortgage is a mortgage loan that a homeowner takes out after he or she already has an original mortgage loan. Second mortgages can be used to help pay for the expense of the house or to gain funding to pay other debts. Interest rates for second mortgages tend to be higher than interest rates for original mortgages.
Justipedia explains Second Mortgage
An example of a second mortgage would be a man who takes out a $50,000.00 mortgage when he already has a $100,000.00 mortgage. Taking out a second mortgage drives the home owner deeper into debt. However, the money received from the mortgage can be used to make immediately needed repairs on the home. People also use second mortgages to finance things such as a child's college tuition, or other expenses such as paying off other debts.
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