A mortgage or home-equity loan secured by property and subordinate to an existing first lien.
Put this term into context.
Use related guides, calculators, and magazine features to see how this concept affects real home-equity decisions.
Related Education Guides
Second Liens on Rental Property: Preserving a Seasoned First Mortgage
A second-lien strategy may preserve an existing first mortgage while creating access to equity, but investors should compare combined leverage and cash flow.
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For veteran homeowners who want a known lump sum, a home equity loan may provide a fixed-payment alternative to a revolving line of credit.
Read guide →Veteran Homeowners and HELOCs: Comparing Flexibility With a New First Mortgage
A conventional HELOC and a VA-backed cash-out refinance solve different problems. This guide compares flexibility, lien position and the effect on the first mortgage.
Read guide →When Keeping Your First Mortgage May Matter
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Read guide →Related Magazine Features
Second-Lien Strategies for Investors With Seasoned First Mortgages
A seasoned first mortgage can be economically valuable. A second lien may preserve it, but the added debt service must still work for the…
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The real comparison is often not line versus refinance; it is the cost of borrowing new money versus the cost of repricing the entire…
Read feature →Why a HELOC Can Be Useful Before You Actually Need the Money
A line established while finances and property conditions are stable can create optional liquidity, but availability is not guaranteed forever and unused credit should…
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