A second mortgage is the loan secured over an above the first or the existing mortgage. Taking a secon mortgage loan is all about making good use of the home equity.the first thing to do would be to get a fai knowledge of what home equity all about. To put it in on line, home equity is simply the amount of ownership that ha been built-up in the home/property over the years. T understand this more clearly let use see home equity i relation to mortgages

Generally residential mortgages are used to buy a home an after that the mortgage loan is paid off over the years wit the mortgage interest rate. The home acts as collateral tha belongs fully to the mortgager after the loan sum has bee paid off. Now as the time passes the market value of the hom increases and this market value minus the outstanding mortgag balance would give the equity of the home. Although that fac is that equity cannot be sold; but banks and financia institutions will be ready to lend money against it.