Your home is the biggest asset. Having a home back you up when you need a loan is one of the greatest advantages of homeownership. In recent years, there has been a major increase in the amount of people looking to use their homes as a way to get access to extra money when they need it most. One of the best ways is to do this through a second mortgage.

A second mortgage is a loan made in addition to your first mortgage, and it’s based on the amount of equity you have built into your home. Many people use them to fund home renovations, to pay off credit cards, or to put a child through college.

The underwriting required to get a second mortgage is much simpler than it was the first time around, and the cost of the transactions involved will be much lower.

On a second mortgage, you   borrow a fixed sum of money against your home equity, and pay it back over a specified period of time. The amount you borrow will be combined with the amount you still owe on your first mortgage.

A simple fact to remember first-- do not take out a second mortgage on your home unless you’ve built up a fair amount of equity in the property already.