Second Mortgage

[Eugine]

Along with the higher interest rate, a second mortgage is usually written for a shorter term than first mortgages. Often, this second loan on the property is taken out to make repairs or enhancements to the property, and is considerably less than the amount of the first mortgage. Under these circumstances, the homeowner is expected to repay the amount of the mortgage plus applicable interest within a shorter period of time.

[Eveleen]

Some mortgage companies will let you take out two loans at the same time-one as a first mortgage for the bulk of the money, plus a small second mortgage that will work in tandem with the first.