Second mortgage loans may seem like a good, quick way to get your hands on some extra cash to pay for bills or your child's college tuition, but be very careful with them. Even if you're not having any problems paying the first mortgage, an unexpected illness or job loss can plunge you deep into debt very quickly.

Before you apply for a second mortgage loan, you should be aware of several things. First, the upfront costs can be substantial, and you may not be able to roll them over into the mortgage total. Second, you won't be able to get a loan for more than 90% of your home's value -- and probably less, depending on the state you live in.

When considering a second mortgage loan, don't be coy with the lender; ask them right up front exactly what they need from you, especially if they don't let you know themselves. Then go about the process of providing them with those materials, so that the process will go smoothly.