A Second Mortgage is the Second Loan You Have Secured Against Your Home

A second mortgage is the second loan you have secured against your home. A second loan can be taken by home owners for any reason they might need the money for. Owning your own home makes it easy to loan money as you can secure the loan against your home.
Most home owners use this money to renovate their homes. As this loan is usually a large amount of money it will be able to pay for all the work that has to be done. It is worth the expense of the loan to have all the repairs done on your home.
Second mortgages have this name because they are the second loan that you have taken from a bank that is secured against your home. The first loan financed the purchase of your home. This loan will take many years to pay off and once you have added another loan to pay off you might find difficulty later on in paying them both off.
It is always wise to first make sure that there is no other way out for you to get access to cash than to take this loan. It will cost you a lot as the interest is higher on this loan than on the first one.
If you take a second mortgage on your home it is very risky as you will then have two loans secured against your home. The first loan is the one with which you purchased your home. If at any time got into financial difficulty and could no longer pay off the loans you could lose your home to the bank or building society.
Lee Van writes informative articles on various subjects including Second Mortgages http://www.secondmortgagessite.com
Article Source: http://EzineArticles.com/?expert=Lee_Van