 TITLE: What Is a Second Mortgage? CONTENT: When Does It Make Sense to Take Out a Second Mortgage?\n------------------------------------------------------\nThe ideal circumstance for taking out a second mortgage may be to finance home improvements that significantly enhance the value of your home. Whether you plan to sell your home soon or stay long term and take advantage of the improvements, you'll typically see a good return on your investment. Some home improvements yield bigger returns than others, however, and depending on the housing market, some may yield no return at all; for example, a built-in swimming pool is practically essential in some locales, but in other areas one may discourage buyers. It's your home, so improve it as you wish, but if enhancing resale value is your goal, it might be wise to consult a real estate professional to help prioritize your projects.\nA second mortgage may also make sense if you're overwhelmed with high interest debt, and a home equity loan will enable you to reduce your monthly payments (and interest costs) to a manageable level. Of course, this strategy will only work if you can avoid running up additional debt like the ones that got you in trouble to begin with.\nBecause home equity represents the largest portion of many families' wealth, a second mortgage may be the only option to cover large unexpected expenses, including medical emergencies or emergency home repairs. END