If you own a home, a second mortgage loan can be your ticket out of debt. Thousands of homeowners apply for second mortgages or home equity loans. It’s likely the easiest loan you’ll ever receive and the fund from the loan can be used for multiple purposes.

Commonly, homeowners use the cash from a second mortgage loan to consolidate debts. Since second mortgage rates are typically lower than credit cards, borrowers can enjoy lower monthly payments and fixed terms. Even though these loans are beneficial, everyone should proceed with caution.

Here are a few things to consider before applying for a second mortgage loan.

1. Get a good interest rate: Even if you have so-so credit, it’s possible to get a reasonable rate on a second mortgage loan. Obtain quotes from various lenders – at least three.

2. Don’t default on the loan: A second mortgage loan is just as important as your first mortgage. In fact, if you default on a home equity loan, the lender can foreclose your home.

3. Don’t acquire new debts: While a second mortgage loan is a great debt elimination strategy, some people make the mistake of acquiring new credit card debt. In essence, they double their debt.