A lump sum
Fund a defined expense, such as a renovation or major repair, subject to program rules.
Put your home equity to work
Fixed Rate
Second Mortgage
Access a lump sum from your home’s equity with a fixed interest rate—while keeping your existing first mortgage in place.
The basics
What is a fixed rate second mortgage?
Also known as a fixed-rate closed-end home equity loan, it is a separate loan secured by your home. You receive funds once rather than drawing repeatedly from a credit line. Repaying the balance does not make those funds available to borrow again.
A fixed rate
The interest rate stays the same for the agreed loan term.
A separate payment
Budget for the new loan alongside your existing mortgage and other housing costs.
Choose the structure that fits
Second mortgage, HELOC or refinance?
| Feature | Fixed Rate Second Mortgage | HELOC | Cash-out refinance |
|---|---|---|---|
| Existing first mortgage | Stays in place | Typically stays in place | Replaced with a new loan |
| Access to funds | One lump sum | Draw as needed during the draw period, up to the limit | Cash proceeds from the new loan |
| Interest rate | Fixed | Usually variable; options vary | Depends on the new loan |
| Payments | First mortgage plus second loan | First mortgage plus HELOC payment | Payment on the replacement mortgage |
Compare the full borrowing cost, including fees and the repayment period. Keeping your first mortgage’s rate does not automatically make a second mortgage the lowest-cost choice.
Know the benefits and tradeoffs
Why consider it?
- Access equity to satisfy a court ordered equity equalization payment incident to divorce.
- Keep the first mortgage you already have.
- Borrow for a known funding need.
- Plan around an interest rate that will not change.
What to weigh
- Your home secures the loan; missed payments can lead to foreclosure.
- Closing costs and interest add to the amount you repay.
- A second payment affects your monthly budget.
Using home equity to consolidate debt converts those balances into debt secured by your home. Compare alternatives and total interest costs, especially if repayment would extend over a longer period.
Start with a clear plan
What will Jennifer review?
Your home’s estimated value, existing liens, credit, income and monthly obligations help determine available options. Loan amounts, terms, fees and equity requirements vary by lender and program.
01 / Define the goal
Discuss the amount you need and how you plan to use it.
Discuss the amount you need and how you plan to use it.
02 / Review the numbers
Gather mortgage statements and requested income and asset records.
Gather mortgage statements and requested income and asset records.
03 / Compare the options
Review available terms, closing costs and the combined monthly payment.
Review available terms, closing costs and the combined monthly payment.
Common questions
Will this change the rate on my first mortgage?
A standalone second mortgage leaves the first loan in place. The new loan has its own rate, terms and payment.
Can I draw more funds later?
A closed-end loan pays out once. A HELOC is designed for repeated draws during its draw period.
How much can I borrow?
Jennifer can review the property value, existing debt and your qualifications to identify applicable program limits. Available equity does not guarantee approval.
All loans are subject to eligibility, underwriting and current program availability. Request a personalized review of rates, fees and terms.
Learn more: CrossCountry Mortgage’s closed-end second mortgage overview · CFPB: Home equity loans · CFPB: Home equity loans and HELOCs