Second Mortgages
Tap into your home equity with a second mortgage. Fixed rates, lump sum payment, predictable monthly payments.
What is a Second Mortgage?
A second mortgage, also known as a home equity loan, allows you to borrow against the equity you've built in your home. Unlike a HELOC which provides a revolving line of credit, a second mortgage gives you a lump sum of money upfront with a fixed interest rate and fixed monthly payments over a set term (typically 5-30 years).
Second mortgages are called "second" because they are subordinate to your first mortgage. In the event of foreclosure, your first mortgage lender would be paid before the second mortgage lender. This additional risk typically results in slightly higher interest rates than first mortgages, but rates are still significantly lower than credit cards or personal loans.
Second Mortgage Requirements
Equity Requirements
Typically need at least 15-20% equity in your home
Combined loan-to-value (CLTV) usually capped at 80-90%
Borrow up to $500,000 depending on equity
Credit & Income
Credit score typically 620 or higher (640+ for best rates)
Debt-to-income ratio below 43%
Stable income and employment history
Property Requirements
Primary residence, second home, or investment property
Home appraisal required
Property must be in good condition
Documentation
Recent pay stubs and W-2s
Tax returns (last 2 years)
Bank statements and asset documentation
Why Choose a Second Mortgage?
We match you with the right investor program and help you close fast so you can scale your portfolio.
Fixed Interest Rate
Lock in a fixed rate that won't change over the life of the loan, providing payment predictability.
Lump Sum Payment
Receive all funds at closing, perfect for one-time expenses like home renovations or debt consolidation.
Lower Rates Than Credit Cards
Interest rates significantly lower than credit cards or personal loans, saving thousands in interest.
Predictable Payments
Fixed monthly payments make budgeting easy with no surprises or rate adjustments.
Keep Your First Mortgage
Don't refinance your low-rate first mortgage. Access equity while keeping your existing loan intact.
Potential Tax Deduction
nterest may be tax-deductible if used for home improvements. Consult your tax advisor.
Common Uses for Second Mortgages
Rates, Terms & Costs
Interest Rates
Second mortgage rates are typically 0.5% - 2% higher than first mortgage rates due to the subordinate lien position. Your rate depends on credit score, loan-to-value ratio, and loan amount.
Current Range: 7.5% - 10.5% APR (fixed)
Loan Terms
Choose from 5, 10, 15, 20, or 30-year terms. Shorter terms mean higher monthly payments but less interest paid over the life of the loan. Longer terms offer lower monthly payments.
Most Popular: 15-year and 20-year terms
Closing Costs
Expect to pay 2-5% of the loan amount in closing costs, including appraisal, title insurance, origination fees, and recording fees. Some lenders offer no-closing-cost options with slightly higher rates.
Typical Range: $2,000 - $5,000
Second Mortgage vs. HELOC
Feature
Interest Rate
Payment Amount
Funds Disbursement
Best For
Repayment Term
Predictability
Second Mortgage
Fixed
Fixed monthly payment
Lump sum at closing
One-time expenses
5-30 years
High - fixed rate & payment
HELOC
Variable
Variable (interest-only option)
Draw as needed
Ongoing expenses
10-year draw, 20-year repayment
Low - rate can change
Ready to Access Your Home Equity?
Get a free quote from 260+ lenders and see how much you can borrow with a second mortgage. No obligation, fast approval.
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This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
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NMLS #2018327
Address: 7840 S Sorrell Ln Gilbert 85298 AZ
Phone: 602-705-7983
Email: [email protected]
Disclaimer: All loans subject to qualifying factors. Not all applicants will qualify.
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