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Of course, there are the standard fixed, second mortgages that are amortized fully, which means that you make payments till the end of the term and the balance will be paid off by then. However, there are also balloon second mortgages. Balloon second mortgages (much like balloon first mortgages) generally have lower payments per month because at the end of the term, the balance that is left needs to be paid off. Of course, the danger in this is that if you do not have sufficient funds to pay the balance off at the end of the balloon term, then you are in a bad situation. So, only those who are certain that they can pay a balloon second mortgage should look into these types of second mortgages.
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