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Fixed second mortgages: keep your first loan
Watch a short introduction to fixed-rate second mortgages, then compare the separate loan payment, total borrowing costs and alternatives for accessing equity.
About Fixed Rate 2nd Mortgages by CALVIN The Mortgage Calculator AI
Video by The Mortgage Calculator1:08
Watch on YouTubeMORTGAGERATES.NEWS READING NOTES
The ideas to carry into your comparison.
These notes add context from the publisher’s loan-program information and our learning guides.
A second loan beside your first
A second mortgage adds a separate loan against the property. Keeping the existing first mortgage can be useful when its terms remain attractive, but both loan payments must fit the budget.
A lump sum with a set schedule
A fixed-rate second mortgage generally delivers funds as a lump sum and sets a principal-and-interest payment schedule. Compare the loan term and any balloon or prepayment provisions in the actual offer.
Equity and documentation still matter
Lenders assess the property, existing liens, credit and required income documentation. Alternative-documentation options are program-specific and do not mean automatic approval.