What is a second mortgage in real estate?

A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. Home equity loans and home equity lines of credit (HELOCs) are common examples of second mortgages.

Are second mortgages legal?

When it comes to mortgages and foreclosures, real estate law is all about timing. The general rule in California real estate law is that first in time equals first in right. By definition, a second mortgage is second in time, and therefore second in right when it comes to foreclosure.

What does it mean to have a second mortgage on your home?

A second mortgage — also referred to as a home equity loan or home equity line of credit — is just what it sounds like: another (second) mortgage on your home. Like with your original mortgage, your second mortgage is secured by your home, meaning that if you don’t pay the loan, the bank can take your home.

What kind of second mortgage can I get with Rocket Mortgage?

Apply online with Rocket Mortgage ® to see your options. There are two major types of second mortgages you can choose from: a home equity loan or a home equity line of credit. A home equity loan is like a cash-out refinance in that it allows you to take a lump-sum payment from your equity.

How can I get a second home loan?

The important thing is to get a variety of quotes, including interest rates and total fees, and compare them. Use our lender directory to find local lenders in your area that can help you obtain a second mortgage or use our lender tool to find a lender who offers home equity lines of credit.

What happens if you default on a second mortgage?

In other words, your lender has the right to take control of your home if you default on your loan. When you take out a second mortgage, a lien is taken out against the portion of your home that you’ve paid off.