See  Dr. Phil’s Resources   for Stress-Free Selling

Second mortgage

A type of loan that allows homeowners to borrow against the value of your home. A second mortgage requires you to use your property as collateral, which means the lender can take your home from you in the event you can no longer make payments. It’s called a second mortgage because your purchase loan is the first loan in line if your home goes into foreclosure. When you take out a second mortgage, a lender may provide you with a lump sum upfront in the form of a home equity loan or revolving line of home equity credit. 

Read more: How to Use Your House to Free Up Cash