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Calculate second mortgage payments from amount, rate and term — see monthly, total interest and combined LTV.
Calculate second mortgage payments from amount, rate and term — see monthly, total interest and combined LTV.
Enter values above and click Calculate — results will appear here with the formula explained.
A second mortgage is a separate loan secured behind your first mortgage — same house, junior lien position. It amortizes like a first (fixed payment over term), but because the lender stands second in foreclosure priority, rates run 1–3 points above first-mortgage rates, typically 8–12% in current markets. Combined loan-to-value (first balance plus second, divided by home value) is the gatekeeper metric: most lenders cap CLTV at 80–90%, with pricing tiers stepping every 5 points.
Second mortgage versus HELOC versus cash-out refinance is the core comparison. A closed-end second gives a fixed lump sum with predictable payments — best for one-time needs like a renovation with a firm bid. A HELOC is a revolving line with variable rates — best for phased draws over years. Cash-out refinance replaces the first entirely, which only wins when current first-mortgage rates beat your existing rate. Run all three scenarios here and in the HELOC calculator before choosing.
Combined LTV and DTI decide approval together: CLTV under 80% gets the best rates, 80–85% is standard approval territory, 85–90% is possible with strong credit and reserves, and above 90% is effectively unavailable outside special programs. Meanwhile total debt-to-income usually must stay under 43–45% including both mortgage payments. A $50,000 second on a $400,000 home with $250,000 first sits at 75% CLTV — comfortable — but the same second on a $320,000 value hits 93.75% and likely fails.
Rates and fees in 2026: expect 8–12% fixed for well-qualified borrowers, with origination 0–2 points plus $500–2,000 in closing costs (appraisal, title, recording). Piggyback 80/10/10 structures (first at 80%, second at 10%, 10% down) avoid PMI without a jumbo loan but price the second near 9–11%. Compare APR, not note rate — points and fees shift effective cost by half a point or more.
Fixed versus variable matters within seconds too: fixed-rate seconds lock payment certainty for the full term, while HELOC-style variable seconds start lower but float with prime. If the second funds a 3-month renovation, variable risk is trivial; if it amortizes over 15 years, fixed usually wins on sleep quality alone. Match the rate type to the use horizon.
When NOT to take a second: combined LTV above 90%, DTI pushing past 45%, using home equity for depreciating consumption (cars, vacations), or when selling within 2–3 years (closing costs won't amortize). Alternatives include unsecured personal loans for small needs (no lien risk), 0% balance-transfer cards for short horizons, or simply delaying the project until a larger down-payment-equivalent cash buffer exists.
Calculate second mortgage payments from amount, rate and term — see monthly, total interest and combined LTV. Formula: Payment = P*r*(1+r)^n/((1+r)^n-1).
A second mortgage is a separate loan secured behind your first mortgage — same house, junior lien position. It amortizes like a first (fixed payment over term), but because the lender stands second in foreclosure priority, rates run 1–3 points above first-mortgage rates, typically 8–12% in current markets. Combined loan-to-value (first balance plus second, divided by home value) is the gatekeeper metric: most lenders cap CLTV at 80–90%, with pricing tiers stepping every 5 points.
Second mortgage versus HELOC versus cash-out refinance is the core comparison. A closed-end second gives a fixed lump sum with predictable payments — best for one-time needs like a renovation with a firm bid. A HELOC is a revolving line with variable rates — best for phased draws over years. Cash-out refinance replaces the first entirely, which only wins when current first-mortgage rates beat your existing rate. Run all three scenarios here and in the HELOC calculator before choosing.
Combined LTV and DTI decide approval together: CLTV under 80% gets the best rates, 80–85% is standard approval territory, 85–90% is possible with strong credit and reserves, and above 90% is effectively unavailable outside special programs. Meanwhile total debt-to-income usually must stay under 43–45% including both mortgage payments. A $50,000 second on a $400,000 home with $250,000 first sits at 75% CLTV — comfortable — but the same second on a $320,000 value hits 93.75% and likely fails.
Rates and fees in 2026: expect 8–12% fixed for well-qualified borrowers, with origination 0–2 points plus $500–2,000 in closing costs (appraisal, title, recording). Piggyback 80/10/10 structures (first at 80%, second at 10%, 10% down) avoid PMI without a jumbo loan but price the second near 9–11%. Compare APR, not note rate — points and fees shift effective cost by half a point or more.
Fixed versus variable matters within seconds too: fixed-rate seconds lock payment certainty for the full term, while HELOC-style variable seconds start lower but float with prime. If the second funds a 3-month renovation, variable risk is trivial; if it amortizes over 15 years, fixed usually wins on sleep quality alone. Match the rate type to the use horizon.
When NOT to take a second: combined LTV above 90%, DTI pushing past 45%, using home equity for depreciating consumption (cars, vacations), or when selling within 2–3 years (closing costs won't amortize). Alternatives include unsecured personal loans for small needs (no lien risk), 0% balance-transfer cards for short horizons, or simply delaying the project until a larger down-payment-equivalent cash buffer exists.
With a $50,000 second at 9% for 15 years on a $400,000 home with a $250,000 first: payment about $507/month, total interest roughly $41,300, combined LTV 75%. The same $50,000 at 11% costs about $568/month — $61 more monthly and $11,000 more lifetime — showing why half-point rate shopping matters on junior liens.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
Last reviewed: September 2026 · Report an error