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Closed-End Second Mortgage
Access Funds And Keep Your Current Low Interest Rate
A closed-end second mortgage offers homeowners the opportunity to leverage their real estate equity while maintaining their low interest rate. With this type of loan, homeowners can receive a lump sum payment of up to 85% of their home’s equity, based on their credit score, income, and other factors. Leveraging real estate equity can be a smart financial move for homeowners looking to secure additional financing. With a closed-end second mortgage, homeowners can tap into their home’s equity while preserving their advantageous 2% or 3% interest rate.
How Do Closed-End Second Mortgages Work?
One of the primary concerns for homeowners contemplating leveraging their real estate equity is the fear of losing their existing low interest rate. Fortunately, a closed-end second mortgage provides a viable solution. Unlike refinancing options or opening a home equity line of credit (HELOC), a closed-end second mortgage does not interfere with the original mortgage terms. It allows homeowners to maintain their current low interest rate while still accessing the equity they’ve built in their home.
Mortgage Program Highlights for a
Closed-End Second Mortgage
- Qualify Using Personal Or Business Bank Statements
- Qualify Using 1099 Income
- Qualify Using DSCR Rental Income
- Mortgage amounts up to $500K
- Maximum loan to value is 85%
- A minimum credit score is 660
- 30 Year Fixed Terms Available
- Max DTI is 50%
- Primary residence, second home and investment properties are eligible
- Single family homes, condominiums, and 2-4 unit homes are all eligible for financing
- DSCR (Short Or Long Term Rental) Allowed
- Foreign National Allowed
Maximizing Equity with a Closed-End Second Mortgage
Owning a home is a significant achievement, and it often comes with the added benefit of building equity over time. For homeowners who have secured
More reserves will be required for mortgage amounts over $1,000,000.00**