Second Mortgage

A second mortgage is any loan that uses the home as collateral while a first mortgage is already in place. HELOCs and home-equity loans are the two main forms. The second lien sits behind the first in default priority — meaning the first-mortgage lender gets paid first in a foreclosure sale.

Because of the junior position, second mortgages usually carry higher rates than the first. They're useful when you want to tap equity without refinancing a low-rate first mortgage.

Why it matters for Milo customers

Milo doesn't typically write second mortgages — our crypto-backed loan is the alternative for borrowers who want liquidity without disturbing their existing first mortgage. No new property lien, no priority dispute, no second-position pricing.

---