Here's how a second mortgage works 

A second mortgage is a type of loan that a homeowner can get in addition to their first mortgage.

The second mortgage is a lien taken out against a property that already has a home loan on it.

 The lender takes a lien against your property, which is subordinate to your first mortgage.

This means that if you later default on either of your mortgages and one of your lenders has to foreclose, the lender that issued your first mortgage gets paid before the issuer of the second.

Second mortgages are riskier for lenders, so rates typically are higher.

 Second mortgages allow homeowners to borrow against the equity in their homes without having to refinance the first mortgage.

Using a second mortgage, you borrow up to 85% of your total home value (minus the amount owed on a first mortgage) for as little as 2 percentage points over prime rate, plus closing costs.

Lenders expect you to have about 20% equity in your home before they’ll approve a second mortgage.

Along with a separate application process, underwriting and loan closing, second mortgages also require you to make separate payments each month in addition to your normal mortgage payments.