Fixed-rate second mortgage
A fixed-rate second mortgage: one lump sum, your first mortgage untouched.
A fixed-rate second mortgage gives you one lump sum at closing, repaid in equal monthly payments at a rate that does not change, while your first mortgage stays exactly as it is. Here is how it works, who it suits, what the programs ask for, and a calculator that shows what you may be eligible for.
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- NMLS #103098
- Equal Housing Lender
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Pick the one closest to you. A few short questions follow, and a licensed loan officer gets back to you.
- See what second mortgage I may be eligible for
- Get a quote on a fixed-rate second
- Compare it with a home equity line of credit
Ready for the full application? Apply online
Fidelity Residential · NMLS #103098 · Equal Housing Lender
- Direct, licensed lenderNMLS #103098. Check our licences on NMLS Consumer Access.
- A licensed loan officerA real person reviews your file and answers your questions.
- Several second-mortgage programsWe compare programs to find the rules that fit your home, your credit and your income.
- Your first mortgage staysThe second sits behind the mortgage you have, which stays exactly as it is.
The basics
What a fixed-rate second mortgage is
A fixed-rate second mortgage, also called a home equity loan or a closed-end second, is a loan secured by a home that already has a first mortgage. You receive the whole amount at closing and repay it in equal monthly payments at a rate that does not change, over a term set at the start. Terms from ten to thirty years are available.
Your first mortgage stays exactly as it is, which is why borrowers choose a second when the first mortgage has terms they want to keep. Unlike a home equity line of credit there is no draw period, no revolving balance and no variable rate; unlike a cash-out refinance the first mortgage is not replaced.
It can be arranged on its own after you have owned the home, or at the same closing as a new first mortgage on a purchase or refinance. The cash can be used for any purpose; programs ask for a short explanation of what it is for.
Who it suits
- Homeowners who want to keep their first mortgage and take one sum against the equity behind it
- A known cost, such as a project with a fixed price or debts to combine, where a set payment is easier to plan around than a variable one
- Self-employed borrowers: some programs document income with bank statements, 1099s, a prepared profit-and-loss statement or verified assets
- A primary residence, a second home and, as a business-purpose loan, a rental property
Not for manufactured homes. If you would rather draw as you go, see the home equity line of credit.
Fixed-rate second mortgages at a glance
- What it is: one lump sum at closing, repaid in equal monthly payments at a rate that does not change, behind a first mortgage that stays as it is.
- Terms: from ten to thirty years.
- When: on its own after you have owned the home, or at the same closing as a new first mortgage on a purchase or refinance; no ownership seasoning in some programs.
- The home: a primary residence, a second home and, as a business-purpose loan, a rental property; not a manufactured home.
- Income: tax returns and pay stubs, or, in some programs, bank statements, 1099s, a prepared profit-and-loss statement, verified assets, or the rental income of an investment property.
- Valuation and reserves: smaller loans may need only an automated valuation with a property inspection; larger loans get a full appraisal. No reserves are required at most programs. The calculator below shows what these answers may support.
How it works
How a fixed-rate second mortgage works
The amount comes from your equity
The lender counts the balance of your first mortgage against what the home is worth; the amount available depends on the equity left after that, your credit, your income and the program’s own limits.
Valuation and documents
Smaller loans may need only an automated valuation with a property inspection; larger loans get a full appraisal. Income is documented under the program’s method, and a short explanation of what the cash is for is usual.
One sum at closing
You receive the whole amount at closing. If the second closes with a new first mortgage, the second lender generally follows the first lender’s underwriting.
Equal payments to the end
You repay in equal monthly payments at a rate that does not change, over the term set at the start, from ten to thirty years. Your first mortgage payment is unchanged.
Requirements
Second mortgage requirements: what the programs ask for
In words, not numbers: each program sets its own figures, and the calculator below works them out for your answers.
- Credit: scores in the mid-600s can fit smaller loans, with larger loans and higher borrowing limits for stronger credit
- Loan amounts: from the tens of thousands up to one million dollars, within each program’s limit on the share of the home’s value that all loans against it may reach
- Income: tax returns and pay stubs, or, in some programs, bank statements, 1099s, a prepared profit-and-loss statement, verified assets, or the rental income of an investment property
- The home: a primary residence, a second home or, as a business-purpose loan, a rental; a house, condominium, townhome or small multi-unit property; not a manufactured home
- Ownership: no ownership seasoning in some programs, so a second can be arranged soon after buying
- Valuation and reserves: smaller loans may need only an automated valuation with a property inspection, larger loans a full appraisal; no reserves are required at most programs
- Residency: permanent residents and visa holders may be eligible; one program also accepts DACA recipients and ITIN borrowers on some loans
- Where: available in the states where we lend; program limits apply in some states
Rental property
Fixed-rate seconds on a rental property
A second on a rental property is a business-purpose loan, so we can state the terms the programs we work with publish for it. Each figure below is one program’s own term; no two are combined into one loan. Figures as read on 11 October 2026 from the program documents on file; they expire on 11 November 2026 unless reviewed.
| Term | The most lenient program offers |
|---|---|
| Share of value borrowed, all loans combined | Up to 85% of value with a credit score of 700 or higher, on loans to $350,000 with full documentation |
| Credit score | From 660, at lower shares of value |
| Loan size | From $50,000, up to $1,000,000 on a one-unit rental with a score of 720 or higher at up to 70% of value |
| Income | Debts up to 50% of income with full documentation, bank statements, 1099s, a prepared profit-and-loss statement or verified assets; or the property’s own rent, when it covers the payment (a ratio of 1.00 or more) |
| Term | Fixed, from 10 to 30 years |
| Timing and prepayment | On its own with no ownership seasoning at some programs, or at the same closing as a new first mortgage; a prepayment penalty may apply on a rental second at one program where state law allows |
Business-purpose loans have their own state list, which differs from our consumer list; a loan officer confirms your state. These figures are the programs’ published limits, not a rate, payment or offer, and they change when the programs change.
Calculator
Home equity eligibility calculator
One question at a time: the home, what is owed on it, the amount you have in mind, your credit and your income. The calculator works each program’s rules out on its own and shows the second mortgage you may be eligible for, with the reasons that set the figure. An estimate, not an offer or an approval.
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This calculator gives an estimate for information only, from the answers you enter, against the lending programs we work with as of the date on this page. It is not a loan application, an offer, an approval, a pre-qualification, a rate quote or a commitment to lend, and no rate, payment or fee is shown here. Each program is worked out on its own rules; terms are never combined across programs. Full underwriting reviews your credit report, income, assets, the home’s value and title, and the programs and their rules change without notice.
Questions
Common questions about fixed-rate second mortgages
How is a fixed-rate second different from a HELOC?
A fixed-rate second gives you one lump sum at closing, repaid in equal monthly payments at a rate that does not change. A home equity line of credit is a revolving line with a variable rate: you draw what you need during a draw period and pay interest only on what you have drawn. Both sit behind your first mortgage, which stays as it is.
How is it different from a cash-out refinance?
A cash-out refinance replaces your first mortgage with a new, larger one. A second mortgage leaves the first mortgage exactly as it is and adds a separate loan behind it, which is why borrowers choose it when their first mortgage has terms they want to keep.
What can I use the money for?
Any purpose. Programs ask for a short explanation of what the cash is for, as part of the file.
Can I get a second at the same time as I buy or refinance?
Yes, at some programs. A second can be arranged on its own after you have owned the home, or at the same closing as a new first mortgage on a purchase or refinance; the second lender then generally follows the first lender’s underwriting. Some programs need no ownership seasoning, so a second can also be arranged soon after buying.
I am self-employed. How do I show my income?
With tax returns and pay stubs, or, in some programs, with bank statements, 1099s, a profit-and-loss statement prepared by a tax professional, or verified assets. A second on a rental property can be based on the property’s own rent. Our bank statement loans page explains how deposits are read.
Will I need an appraisal or savings in reserve?
Smaller loans may need only an automated valuation with a property inspection; larger loans get a full appraisal. No reserves are required at most programs.
Can I get a second on a rental property?
Yes, at several programs, as a business-purpose loan. Some of those programs can use the rent the property brings in instead of your personal income. A loan officer can tell you which fit.
Do you lend in my state?
Seconds are available in the states where we lend, and program limits apply in some states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999.
Ready to talk about a fixed-rate second mortgage?
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This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
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