Second mortgages work in a similar manner to traditional or first mortgages, with the main difference being that their priority order is always behind your first lender. Second mortgages may also be known as Home Equity Lines of Credit (HELOCs), equity loans, or simply as a second mortgage. Because they are subordinate to the first mortgage, they carry more risk, which is why the rates and costs associated with a second mortgage are often higher than those of a traditional first mortgage. However, they can be useful tools for debt consolidation, particularly if you have many unsecured debts (which often carry high interest rates) and can be an effective short-term solution to improve your monthly cash flow and credit score. A mortgage broker can help you understand if a second mortgage is the right choice for your financial situation.