A second mortgage is a loan secured the property in which the first mortgage was placed.  The amount one can borrow is based upon the amount of equity in the home.  Equity is determined by subtracting the amount owed from the home's value. Mortgage Calculator

Second mortgage loans differ from first mortgages in several ways: a 2nd Mortgage often has a higher  interest rate, a shorter term, and may require a balloon payment at term expiration.  Second mortgages are also considered Home Equity Loans or Home Equity Lines of Credit as they utilize the equity in the home as collateral for a loan.

Second mortgage loans are used by many people to pay off credit card debt or other high interest debt.  Essentially you can use the cash for any reason you wish, make home improvements, consolidate debt, buy a car, or invest.

No Equity in your Home? - With a 125% Mortgage  with or without equity you can borrow up to 125% of the value of your home. Learn More