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Sometimes you've already got a mortgage on your home, but suddenly you need more money. A second mortgage, also known as a home equity line of credit or real estate equity line of credit, is a way to take out a second loan against the same home. If your primary mortgage is typically 60 to 70 percent of the value of your home, a second mortgage can push your LTV to 80 to 85 percent. You can use it to pay for living expenses or education, or you can use it to supplement your business with a business equity loan. However, interest rates tend to be much higher than conventional mortgages, and repayment burdens can increase significantly if the value of your home drops or your income decreases. In the end, it comes down to two things. Only borrow what you can afford in monthly payments, and only borrow what you absolutely need. If you keep these two things in mind, a subordinated mortgage can be a breathing room, not a crisis. #second mortgage #mortgage #mortgage addition #mortgage addition