The purpose of a second mortgage is to allow homeowners to borrow additional funds by leveraging the equity they have built up in their property. Unlike a primary mortgage, which is used to purchase the home, a second mortgage is a loan taken out on top of the original mortgage, with the property serving as collateral for both loans. Homeowners might opt for a second mortgage to access funds for various purposes, such as home improvements, debt consolidation, education expenses, or other significant financial needs. Since it’s secured by the home, a second mortgage often comes with lower interest rates than unsecured loans, but it also carries the risk that if the homeowner fails to make payments, they could lose their property.