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Second Mortgages

Access your home equity without losing your current mortgage’s great interest rate with a Second Mortgage from Newfi! 

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What is a Second Mortgage?

A Second Mortgage is a loan borrowers take out to get access to their home’s equity. Second Mortgages are independent of a borrowers first mortgage. They are a second lien on your home, with its own interest rate and terms. Unlike a Home Equity Line of Credit (HELOC), Second Mortgages are paid out in one disbursement. 

Get In Touch with a Newfi Senior Loan Advisor Today!

Our team of dedicated Senior Loan Advisors are here to help you find the right mortgage solution for your situation.

Why Use a Second Mortgage?

Borrowers typically take out a Second Mortgage in order to access a set amount of fund and pay for things like:

  • High-Interest Credit Card Debt
  • School or College Tuitions 
  • Home Improvement Projects, like renovations

You may need to access your home’s equity to pay for other things as well. How you use the equity in your home is up to you!


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Licensed in 40 States

What are Requirements for Second Mortgages?

Newfi’s Second Mortgage requirements

  • Up to 85% Combined Loan-to-Value
  • Up to a 50% Debt-to-Income Ratio
  • Credit Scores as low as 640
  • Loan Amounts from $100k to $350k
  • Available as a Standalone or Piggyback

Have questions about qualifying? Click here or call us at (888)316-3934 to get in touch with a Newfi Senior Loan Advisor.

Frequently Asked Questions

How Does a Second Mortgage Work?

A Second Mortgage is a type of home equity loan option that allows borrowers to take out an additional mortgage using the equity in your home. Second Mortgages are entirely independent of a borrowers first mortgage loan — meaning it has its own loan terms and interest rate —  and is an additional lien on the borrower’s property.

What are the Benefits of a Second Mortgage?

  • Access Your Equity and Keep Your Current Mortgage Interest Rate

    • Because there could be more equity in your home than ever before, it’s a great time to take advantage of that passive equity and make it work for your current needs. With Second Mortgage, borrowers take a second loan that will have its own interest rate. This means you get to keep your great rate on your first mortgage!
  • Increasing Your Cash Flow

    • With inflation on the rise, it’s more important than ever to create a steady and reliable cash flow. A Second Mortgage can help borrowers keep money in their pockets, pay off their debts, and be prepared for their landmark life moments!
  • Paying Down High Interest Debts

    • Second Mortgage have better interest rates than traditional credit cards. Lower interest rates can help you reduce interest payments overtime and relieve stressful credit card payments

What is a Piggyback and How Does It Work?

Piggybacks, or a Piggyback Mortgage, is a type of HELOC or Second Mortgage that borrowers take out alongside their first mortgage. With a Piggyback Mortgage, the first mortgage has the highest loan balance while the Piggyback Mortgage has a lower loan balance. These mortgages are often used to help borrowers fund part of their down payment and avoid having to pay for Private Mortgage Insurance.


What are the Pros and Cons of a Piggyback?


  • Down Payments Cost You Less Out-of-Pocket
  • Avoid Private Mortgage Insurance (PMI)
  • Lower Monthly Mortgage Payments when Piggyback is Paid Off


  • May be Difficult to Qualify for Two Mortgages
  • Main Mortgage and Piggyback Mortgage will Have Closing Costs Requirements
  • You’ll Need to Pay Back Piggyback in full Before Refinancing

What’s the Difference Between a Second Mortgage and a HELOC?

A HELOC (Home Equity Line of Credit) is also a second lien you take out on your home, but it offers a revolving line of credit. These mortgages work like credit cards, with the ability to borrow money at different points in time and only pay interest on what you use. 

Second Mortgages are different from HELOC’s because, instead of pulling a certain amount from your equity, you receive a lump-sum all at once. This means if you were to take $150,000 out of the equity of your home, you would receive one payment of $150,000. You would then begin to pay the full amount back.

Both HELOCs and Second Mortgages offer borrowers competitive interest rates that are considerably lower than credit cards. That’s why many people opt to use home equity mortgage options to consolidate debt or make big purchases!

What is the First Step in Getting a Second Mortgage?

Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to or fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!

What are Current Rates for a Second Mortgage?

Your exact Second Mortgage rates depend on the equity in your home, the interest rate you qualify for and the term you select. Contact us to review your options and calculate your payment.

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