A fixed payment behind the mortgage you already have.
A fixed-rate second mortgage funds a lump sum at closing and repays it over a set term at a rate that never changes. For a single large cost, or for consolidating debt into one predictable payment, it is the fixed-rate alternative to a HELOC.
- Structure
- Lump sum at closing, repaid over a set term
- Rate
- Fixed for the life of the loan
- First mortgage
- Unchanged
- Self-employed
- Bank-statement second mortgages available
How it works
A fixed-rate second mortgage, sometimes called a closed-end second or a home-equity loan, is a loan secured by your home in second position behind your existing first mortgage. You receive the full amount at closing and repay it in equal monthly payments over a fixed term.
It solves a specific problem: you need a known amount, you want a payment that will not move, and you do not want to refinance a first mortgage with a good rate. Compared with a HELOC, you give up flexibility and gain certainty.
Fixed seconds are commonly used for a major renovation with a firm budget, for consolidating high-rate debt into one payment with a payoff date, or to raise a down payment on a second property. For debt consolidation specifically, read the risk discussion on that page before deciding.
- Owners who want a fixed payment and a payoff date
- A single large cost with a known budget
- Debt consolidation where certainty matters more than flexibility
- Owners with a low-rate first mortgage they intend to keep
- Self-employed owners qualifying on bank statements
Not sure you fit? Ask. Troy tells people on the first call when a different program serves them better.
What to consider
Program details vary by investor and change over time. These are the questions that decide whether the loan is right for you; Troy confirms the specifics for your file.
Lump sum means interest from day one
Unlike a HELOC, you pay interest on the full amount from closing. Borrow what you need, not the maximum.
Term and payment
Shorter terms carry higher payments and lower total interest. Troy shows the trade-off at several terms.
Combined loan-to-value
The loan is sized on your home's value minus the first mortgage, up to the program's combined limit.
Second position
If you later refinance the first mortgage, the second lender must agree to stay behind it, or the second is paid off. Plan the sequence with Troy.
The process
From the first conversation to funding, you deal with Troy.
Talk with Troy
Your home's value, your first mortgage and what the funds are for.
Size and price
Combined loan-to-value, credit and income or bank statements set the amount. You see the payment at several terms.
Valuation and approval
An appraisal or automated valuation establishes value. Troy clears conditions personally.
Fund
Sign, wait out the rescission period if the home is your primary residence, then the funds are released.
Questions people ask
General answers. The answer for your file comes from a conversation with Troy, not from a web page.
Fixed second or HELOC?
A fixed second suits a known amount and a fixed payment. A HELOC suits phased or uncertain spending and a balance you may repay quickly. Troy prices both and shows the total cost.
Will a fixed second affect my first mortgage?
No. Your first mortgage keeps its rate, payment and term. The second is a separate loan behind it.
Can I pay it off early?
Most fixed seconds allow prepayment; some carry a penalty for the first years. Troy confirms the terms of the program that fits.
Can I get one if I am self-employed?
Yes. Bank-statement second mortgage programs qualify on deposits rather than tax returns.
Related programs
Often considered alongside this one. Troy prices the alternatives so you can see them side by side.
HELOC
A revolving line against your equity that you draw on as you need it, leaving your first mortgage untouched.
Debt consolidation
Replace high-rate consumer debt with one fixed payment, with the risks of securing it against your home explained first.
Refinance
Lower the payment, shorten the term or take cash out, with the before-and-after on the table before you decide.
Bank statement
Self-employed income documented with 12 or 24 months of deposits instead of tax returns.
Talk it through with Troy.
No obligation and no credit pull on the first call. Tell him what you’re trying to do and he’ll tell you whether fixed second financing is the right tool, and what it would cost.