It is simply another mortgage on your property – secured against the property, following the current existing mortgage. The term “second” indicates that the loan does not have priority on your home over the current mortgage holder. Instead your existing first mortgage has priority and would be paid before any funds go towards the second mortgage should there be a default. You can use the cash from a second mortgage any way you wish; for example to consolidate your debts, make home improvements, pay for tuition, buy a vehicle or finance a vacation, etc.