Given that mortgage rates are now quite low, it may not be better doing a first mortgage refinance rather than doing a second mortgage.
Expectations are that second home mortgage interest rates will change and as they are already higher than a first mortgage rates, you may be better off if you refinance all your debt rather than stick with a second lien.
Since California homes have experienced great appreciation in the last several years, if you run a house valuation on your property right now, it may be worth twice the price it had several years ago and you be able to get a very nice second home mortgage even if interest rates rise considerably.
No matter if you decide to tap your equity through refinancing or adding a second mortgage due to increased home value, you are a lucky California resident. You might be considering even a home equity line of credit. It will give you the ability to directly write off checks of a HELOC. No matter what the rates are now, it is a great time now to tap in the equity of California homes - either through a cash-out refinance, second mortgage or a HELOC.