A second mortgage lets you borrow against the equity in your home without touching your first mortgage. It can be a smart short-term tool when it’s used for the right reasons.
When a second mortgage makes sense
- Your first mortgage has a great rate or a big penalty to break it
- You need funds for renovations, a business or a large expense
- You want to pay off high-interest debt while you get back on track
- You need short-term financing while waiting on a sale or other funds
What to know before you go ahead
Second mortgages usually cost more than a first mortgage, and they’re often short-term. We’ll be honest about the costs, compare options like a refinance or a home equity line of credit, and make sure there’s a clear plan for paying it off.