In order to fund certain purchases or refinances, or in order to get a better rate or avoid mortgage insurance, we will often combine a first and second loan. We may also add a second loan behind an existing loan if you need cash to consolidate debt, remodel, pay for college, buy a car, etc... A second loan is simply one that is added behind another new or existing loan. A third loan can be added behind a second, and so forth, but not many institutions will consider being in anything less than 2nd position. Seconds can be either a mortgage for a fixed amount or a line of credit which you can draw on or pay down at will, up to a credit limit. The loans can be fixed or adjustable. The loans can go up to 100% of the value of your home, and in some cases up to 125% of the value of your home (refinance only).