A 2nd mortgage refers to a mortgage on a property in addition to an already existing mortgage. 2nd mortgages are financing of home equity. 2nd mortgages can have higher interest rates than first mortgages as they are considered to carry higher risk. The interest rate will depend on the borrower's credit, the property, the amount of total equity available in the property, the current mortgage, and the market rates. Obtaining a 2nd mortgage requires some of the same information as a first mortgage with the exception of a buy sell agreement and homes are normally not inspected and sometimes an appraisal is not done. Many 2nd mortgages are through different lenders than the company who holds the first mortgage on the same property which means there will be two separate payments each month on the property. Homeowners seek 2nd mortgages for as many reasons as there for spending money.