Whoever coined the term "too much of a good thing" obviously wasn't referring to second mortgages. A second lien on a home is a terrific way to borrow money. It offers all the benefits of a first mortgage, including tax deductibility and great interest rates.

But there are ways you can make a good thing even better. The following tips can help you save money:

A short term can go a long way. A 2nd mortgage can be offered in a variety of repayment terms, including three, five, and seven years. To save yourself some long-term interest dollars, choose a loan that has a shorter term. It may stretch your monthly budget, and 2nd mortgage rates may be higher, but you'll save big bucks over the long haul.

Clean credit gets superior rates. Lenders smile favorably upon the borrower who has clean credit. The better your score, the better your rate. Before you apply for a second mortgage, be sure to check your credit report. If there are mistakes, take the time to clean up your record.

Freeze out the fees. Plenty of lenders will give you a second mortgage that can be very appealing. In order to get your business, they'll absorb some, or all, of the closing costs, including the appraisal and the processing fee. Be careful not to jump on the first offer that comes your way. Many lenders will increase the rate to compensate for their lack of closing costs, so make sure that you scrutinize the deal carefully. All that glitters may not be gold.

Negotiate for your bargains. For consumers, virtually everything is negotiable. When it comes to second mortgages, haggling is also part of the game. Ask a lender to remove fees and lower rates. Remember, there are hundreds of lenders eager for your loan. Make them earn it.

Even when it comes to outstanding lending options like the second mortgage, there are always ways to save money. The tips listed above can help on the hunt for a second mortgage. A new loan on the home you love can be like love itself-better the second time around.