• Second mortgages, or "piggybacks," may allow you to finance a child's education.piggyback ride image by Renata Osinska from Fotolia.com
  
  

If You Can Afford To

• A conscientious consumer who needs the money for home improvements that will increase the value of their home, such as a kitchen remodel, to finance a child's education or to consolidate high-interest debt is wise to use a second mortgage to pay for these ventures, as stated by the Web site Professor's House. In general, banks and mortgage companies only offer second mortgages to borrowers with good credit, sufficient equity and the income to repay the loan.
  
  

You Don't Need It That Badly

• The consequences of obtaining a second mortgage sometimes outweigh the advantages. Don't access your home's equity with a second mortgage if you don't need the money and just plan to spend it on items that won't increase in value or may be risky investments. Second mortgage are recourse debt in most states, meaning that the lender can sue you for the money if you fail to repay it, according to the American Chronicle.
  
  

Bottom Line

• Carefully consider the repayment period, interest rate and necessity before obtaining a second mortgage. These generally come with a shorter repayment period than first mortgages (less than 30 years) and higher interest rates, due to the increased risk lenders face. When faced with foreclosure or short-selling your home due to financial hardship, the second mortgage lender can require you to pay the debt or prevent the short sale all together.