Fixed-rate second mortgage
A home equity loan: one lump sum at a fixed rate, your first mortgage untouched.
A fixed-rate second mortgage, or home equity loan, is a loan secured by a home that already has a first mortgage, paid out as one lump sum and repaid in equal monthly payments at a fixed rate. You receive it at closing, and 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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- 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
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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.
A worked example, in words. Jordan Example, a fictional homeowner, has a first mortgage with terms worth keeping and a kitchen renovation with a fixed price from the contractor.
- The choice. A known cost suits one lump sum with a set payment. A home equity line of credit suits costs that come in stages, and a cash-out refinance would replace the first mortgage, so Jordan looks at a fixed-rate second.
- The equity. The lender values the home, with an automated valuation and a property inspection on a smaller loan or a full appraisal on a larger one, and counts the balance of Jordan’s first mortgage against that value.
- The amount. Within each program’s limit on the share of the home’s value that all loans against it may reach, Jordan’s credit and income set how much is available.
- The documents. Jordan is self-employed, so the loan officer looks at programs that accept bank statements, 1099s, a prepared profit-and-loss statement or verified assets. A short explanation of what the cash is for goes in the file.
- Closing. Jordan receives the whole amount at closing and repays it in equal monthly payments at a rate that does not change. The first mortgage, and its payment, stay as they are.
The calculator below works the programs out for your answers and shows what you may be eligible for. It is an estimate, not an offer.
Before you apply for a home equity loan
- Your current first mortgage statement, which shows the balance counted against the home’s value
- Income documents under the program’s method: tax returns and pay stubs, or, in some programs, bank statements, 1099s, a prepared profit-and-loss statement or verified assets
- A short explanation of what the cash is for
- Photo identification for each borrower
- Your loan estimate, which shows the rate, the APR and every cost in dollars, so you can compare a home equity loan with a home equity line of credit or a cash-out refinance for the same home
Requirements
Second mortgage requirements: what the programs ask for
Each figure below is one program’s own limit, and they do not all apply to the same loan. The calculator below works the programs out for your answers.
- Credit: scores from 640 can fit smaller loans; larger loans and a higher share of the home’s value need stronger credit
- Loan amounts: from $50,000 up to $1,000,000, within each program’s limit on the share of the home’s value that all loans against it may reach
- Share of value: your first mortgage and the second together can reach up to 90% of the home’s value on a primary residence, and up to 85% on a second home or a rental, in some programs
- 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
The figures above are as of 13 October 2026 and will be reviewed by 13 November 2026. Each is one program’s own limit; the starting credit score, the largest loan and the highest share of value do not come together in one loan. They are program limits, not an offer or a loan decision; programs change their terms without notice, and your loan depends on credit, income, the home and underwriting review.
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 loan calculator: check your eligibility
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.
What is a fixed-rate second mortgage?
A loan secured by a home that already has a first mortgage, also called a home equity loan or a closed-end second. You receive the whole amount at closing and repay it in equal monthly payments at a rate that does not change, and your first mortgage stays exactly as it is.
Is a home equity loan the same as a second mortgage?
A home equity loan is one kind of second mortgage. A second mortgage is a loan that sits behind the first mortgage on your home; a fixed-rate home equity loan and a home equity line of credit are the two common kinds. This page covers the fixed-rate kind.
How are fixed-rate second mortgage rates set?
This page does not state a rate. A fixed-rate second sits behind your first mortgage and is priced as its own kind of loan. The rate depends on how much all the loans against the home add up to compared with its value, your credit, how your income is documented, whether you live in the home, the kind of home, the size of the loan, and the market when your rate is set; after that it does not change. A quote gives you a loan estimate with the rate, the APR and every cost in dollars. Ask for a home equity line of credit or a cash-out refinance quote as well if you want to compare them for the same home.
Why choose a fixed rate on a second mortgage?
Because the payment is set. The rate does not change, so your monthly payment stays the same, which makes a known cost, such as a project with a fixed price or debts to combine, easier to plan around than a variable rate. If your costs come in stages, a home equity line of credit, which has a variable rate, may fit better.
How much can I borrow with a second mortgage?
It comes from your equity. The lender looks at what the home is worth, what is owed on your first mortgage, your credit and your income, within each program’s limit on the share of the home’s value that all loans against it may reach. The calculator on this page works the programs out for your answers and shows what you may be eligible for; it is an estimate, not an offer.
Is the interest tax-deductible?
The IRS says interest on home equity loans and lines of credit is deductible only if the money is used to buy, build or substantially improve the home that secures the loan. Whether that applies to you is a question for your tax adviser.
What are the risks of a second mortgage?
The home is the security. If you fall behind or cannot repay on schedule, you could lose your home. Borrow for a purpose you have thought through, with a payment you can carry.
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.
Sources: Consumer Financial Protection Bureau, What is a second mortgage loan or “junior-lien”? (opens in a new tab); Consumer Financial Protection Bureau, What is the difference between a home equity loan and a home equity line of credit (HELOC)? (opens in a new tab); Internal Revenue Service, Publication 936, Home Mortgage Interest Deduction (opens in a new tab). Facts are stated in our own words.
Ready to talk about a fixed-rate second mortgage?
Get a quote, apply online, or talk it through with a licensed loan officer.
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.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.