A second mortgage loan is a type of loan that allows you to borrow money using your home as collateral, in addition to your primary or first mortgage. It is also known as a “second lien” on your property because it is subordinate to your first mortgage.

A second mortgage loan can be useful if you need to access cash or want to consolidate debt. Because your home is used as collateral, second mortgages typically have lower interest rates than other types of loans. The loan amount you can borrow will depend on the equity you have in your home, which is the difference between the value of your home and the outstanding balance on your first mortgage.