There are several alternatives to getting a 2nd mortgage for homeowners who need cash. Whether a borrower wants to put their assets on the line as collateral and has good credit, there are options. A home equity line of credit is one main alternative to a 2nd mortgage. This line of credit would equal the value of the property minus the amount due on the original mortgage. The term is usually shorter than that of a 2nd mortgage, and a home equity line works more like a credit card. You may be able to get the emergency cash you need, but your home will still be used as collateral. The benefit is that you will not need to take a lump sum, which frees you to borrow only the amount that you need.
These include unsecured or secured personal loans. Banks often provide personal loans with varied terms and conditions. An unsecured personal loan does not require collateral, and may thus carry a higher interest rate. A secured personal loan may use another asset, such as an owned vehicle, as collateral to secure the loan.
Cash advance loans can also be used for short-term emergencies and unexpected expenses. They are, however, offered at high interest rates with a very short loan term. You may or may not need to present collateral.