There is nothing wrong about taking second mortgages. In reality, you could use the loan amount to make further investments or to add to your business capital. But there are still numerous pitfalls that you should avoid. There are numerous things you should always consider before and during filing of applications to take any of available second mortgages.
Interest rates
In general, second mortgages implement higher interest rates. This is logical because lenders are taking greater risks in providing such loans. If you would get into default on your loans, you are required to first settle your primary or first mortgage. Only after settling your first home loan would you be required to take care of the second.
Check the APR (annualised percentage rate) applied. It is advisable not to immediately apply for the second mortgage you find. There could be other second mortgages with lower APRs. As you perform a comparison before your decision, get quotes from several banks, credit unions, and dedicated mortgage lenders so you could logically find the best product there is for you.