Second Mortgage
Direct definition
A loan secured by your home that sits in second-lien position behind the first mortgage.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Home equity loans and most HELOCs are second mortgages. In foreclosure, they're paid only after the first is satisfied.
Why it matters
Second-lien position drives higher pricing and stricter guidelines than a first mortgage.
Where you may see it
- Loan Estimate
- Closing Disclosure
- Title commitment
A real-world example
A $50,000 second mortgage adds to your total leverage against the home behind your $300,000 first.
Educational and illustrative only
A common misunderstanding
A second mortgage isn't automatically a home equity loan or HELOC by name — it simply refers to lien position, and various loan types can hold that position.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026