What type of mortgage is placed on a property that already has an existing mortgage?

The chosen answer, second mortgage, is appropriate because it refers to a loan that is secured by a property which already has an existing mortgage. When a homeowner needs additional funds but does not want to refinance their primary mortgage, they may opt for a second mortgage, which allows them to borrow against the equity they have built up in their home.

A second mortgage often involves borrowing a smaller amount than the first mortgage and typically has different terms, including potentially higher interest rates. It allows homeowners to access funds for various purposes, such as home improvements or debt consolidation, while the original mortgage remains intact.

The other types of mortgages mentioned do not accurately describe this scenario. A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government, while an equity loan is another term that might be used interchangeably with a second mortgage but does not specifically signify the existence of an initial mortgage. A fixed mortgage primarily relates to the interest structure rather than the sequence in which mortgages are placed on the property. Therefore, the best choice to describe a mortgage placed on a property with an existing mortgage is indeed the second mortgage.