Second mortgages, also known as home equity loans, are loans that homeowners can obtain using the equity accumulated in their homes. This guide aims to shed light on the potential of second mortgages, which can offer a significant source of funds, a tax benefit, and a safety net during financial crises. However, potential risks such as foreclosure and the cost of obtaining the loan must be taken into consideration. Additionally, homeowners should be aware of the possibility of the home’s value decreasing, leaving them “underwater” on the mortgage.