Closed-end second mortgage
A lump sum, a fixed rate, and your first mortgage untouched.
Why a closed-end second
- Keep the rate on your current mortgage
- One lump sum at closing
- Fixed rate and the same payment every month
- Terms from 10 to 30 years
- Ideal for one-time costs like a remodel or debt payoff
How it works
- 1. Check your equity. Use the calculator below.
- 2. Renee shops lenders. She compares second mortgage pricing across hundreds of lenders.
- 3. Close and get your funds. Then one fixed payment until it's paid off.
How much could you access?
Your home's value
- Current mortgage
- Your loan
- Still available
- 20% Texas keeps protected
You may be able to access up to
$150,000
- Loan amount
- $75,000
- Fixed monthly payment
- $663/mo
- Your first mortgage
- Stays as is
Have Renee check your real numbers
She'll compare second mortgage options across lenders, and against a cash-out refinance, so you see the best fit.
Estimates for illustration only, not a loan offer or rate quote. The example rate is not today's rate. Your actual rate, payment and costs depend on credit, property, loan program and market conditions. Property tax and insurance vary by county and property.
Second mortgage, HELOC or cash-out refi?
| HELOC | Closed-end second | Cash-out refinance | |
|---|---|---|---|
| How you get the money | A line you draw from as needed | One lump sum | One lump sum, in a new first mortgage |
| Rate | Usually variable | Fixed | Fixed or adjustable |
| Your current first mortgage | Stays as is | Stays as is | Replaced at today's rates |
| Payment | Based on what you've drawn | Same every month | One new payment |
| Best for | Ongoing or uncertain costs | A known, one-time cost | When today's rate beats your current one |
Closed-end second questions
What is a closed-end second?
A second mortgage that pays you one lump sum, with a fixed rate and the same payment every month until it's paid off. Your first mortgage doesn't change.
Why not a cash-out refinance?
If your current rate is lower than today's rates, a cash-out refi would reprice your whole balance. A closed-end second only prices the new money.
How is it different from a HELOC?
A HELOC is a line you draw from over time, usually at a variable rate. A closed-end second is a fixed amount at a fixed rate, so your payment never changes.
What's different in Texas?
Texas caps all loans on your home at 80% of its value and requires a 12-day waiting period before closing a home equity loan. Renee handles each step with you.
Get your fixed-rate second mortgage quote
Tell Renee what you need and she'll compare lenders for you.