Second-Position HELOC

Keep your first mortgage and tap equity with a second-lien home equity line of credit.

Who it's for

Homeowners who like their current first mortgage and do not want to refinance it
People who need equity for renovations, debt consolidation, or other goals
Owners who want a revolving line of credit instead of a lump-sum cash-out
Anyone comparing a second-lien HELOC with a cash-out refinance

Key benefits

Keep the first mortgage

A second-position HELOC sits behind your current first loan, so you may be able to tap equity without replacing that mortgage.

Use equity over time

Draw for the project or expense as it comes up, rather than taking a large cash-out all at once.

A clear comparison

I'll show second-position HELOC versus cash-out refinance and first-position HELOC so the tradeoffs are easy to see.

Typical requirements

An existing first mortgage (or first lien) and enough combined equity to support a second-lien HELOC
Credit, income, and combined loan-to-value that meet current guidelines
A property that meets the program's standards
Documents similar to a refinance: income, assets, ID, and insurance
Exact terms vary. Let's review your situation.

Questions about Second-Position HELOC

What does second position mean?

Second position means the HELOC is behind your first mortgage on title. The first lender stays in first lien; the HELOC is an additional lien.

Will this change my current mortgage payment?

The first mortgage usually stays as it is. The HELOC has its own payment, which can change as you draw. I'll show you a sample picture before you decide.

Is a second-position HELOC better than cash-out refinance?

It depends. If you want to keep the first loan, a second-lien HELOC can fit. If you want one new first mortgage and a lump sum, cash-out may fit. I'll run both.

Can I pay it down and use it again?

During a typical draw period, yes: you can often repay and redraw. After that, many HELOCs move into repayment only. I'll explain the timeline for the program we look at.

First-Position HELOC

A home equity line of credit in first lien position when you want flexible access to your equity.

Learn more →

Refinance

Lower your payment, shorten your term, or tap your home's equity.