An additional mortgage on property. A subordinated lien created by a mortgage loan over the amount of the existing first mortgage. In case of a default the first mortgage must be paid before the second mortgage. Second loans are more risky for the lender and usually carry a higher interest rate.
The current housing crisis and rise in foreclosures is evidence that at least some consumers failed to do adequate research on mortgage payment calculations and the cost of homeownership. Many of these homeowners have now found out they have obtained home loans that put them in a position of duress do to the high cost
Each borrower has different needs making this question far too difficult to answer. Several points to consider are: How long do you intend to live in your home? How much money do you have for a down payment? How much can you afford in monthly payments? Do you expect your financial situation to change? With