 TITLE: What Is a Second Mortgage? CONTENT: Common Reasons for a Second Mortgage\n------------------------------------\nAccess to relatively large amounts of money makes second mortgages popular for covering major expenses. You can use funds from a second mortgage for anything you like, including:\n*   Consolidating and paying off existing debt, especially high interest loans and credit card balances\n*   Launching or investing in a small business (as a supplement or alternative to an SBA Loan)\n*   Medical debts\n*   College tuition and other expenses\n*   Purchasing a car, boat or recreational vehicle\nSecond mortgages are also often used as home improvement loans, to cover expenses for major repairs (a new roof or HVAC system, for instance), renovations (room additions, bathroom remodeling and the like), landscaping projects or even a down payment on a second home.\nOne advantage to using second mortgage funds to fix up your home is that under the 2017 tax reform law, the interest you pay on a second mortgage loan is deductible from your federal income tax, but only if the loan is used to \"buy, build or substantially improve\" your home.\nUsing second mortgage funds to improve a house also can be a good way to increase the home's resale value. Depending on the age of the property, the nature of the renovations and the strength of the local housing market, judicious improvements can more than pay for the amount of the loan upon sale of the house. END