junior lien

Home equity loans and home equity lines of credit (HELOCs) are the most common examples of second mortgages. This guide explains how each second mortgage works, why the lien position matters, the risks the CFPB flags, and how Colorado Springs homeowners can decide what fits.

A second mortgage, also called a junior-lien, is a loan you take out using your house as collateral while another loan is already secured by the same property. Home equity loans and home equity lines of credit are the most common examples. Here is how lien position works, why it matters, and what Colorado homeowners should weigh before borrowing against home equity.