Equity is real money. The lien you take against it is real too. Three structures to choose from - fixed second, revolving line, or refinanced first - each with different math, different risk, different fit. Pick the one your file actually warrants.
A lump-sum second mortgage on top of your existing first mortgage. Fixed rate, fixed payment, fixed term - typically 5 to 30 years. You receive the full amount at closing and pay it back on a defined schedule, the same way you pay your first mortgage.
The first mortgage stays untouched. Your rate, your remaining term, your existing terms - all of it stays exactly as it is. The new loan sits in second position on title.
Best for: known, one-time expenses where certainty matters more than flexibility - a defined renovation budget, a debt consolidation payoff figure, a planned purchase. When you know the dollar amount and want to lock the rate and payment, this is the cleanest structure.
A revolving credit line secured by your home, structured like a credit card with a much lower rate. You’re approved up to a maximum credit limit; you draw what you need, when you need it, and pay interest only on the balance you carry.
Two phases: a draw period (typically 10 years) when you can borrow and pay interest-only, and a repayment period (typically 15–20 years) when the line closes and you pay principal plus interest on the remaining balance. Rate is variable - usually tied to prime + a margin - which means your interest cost moves when the Fed moves.
Best for: ongoing or uncertain expenses where flexibility matters more than predictability - phased renovations, business cash-flow needs, emergency reserves, college tuition spread across years. Also useful as a low-cost backup credit facility you don’t draw on unless needed.
Different from the other two: you don’t add a second lien - you replace your existing first mortgage with a new, larger one and take the difference as cash at closing. One mortgage, one payment, one set of terms going forward.
This is the right move when you want to restructure the first mortgage anyway - if rates have dropped meaningfully below your current rate, or if you want a different term (15-year, 30-year), or if you want to switch from ARM to fixed. The cash-out is essentially a bonus alongside a refi that already pencils.
Best for: larger needs combined with a desire to refinance the first mortgage. If your current first mortgage rate is much lower than market, a cash-out refi may not pencil - a second-lien Home Equity Loan or HELOC will usually beat it. We’ll run both sides of the math before recommending.
Same equity, three structures. The right one depends on what you’re using the money for, how certain you are about the amount, and whether your first mortgage rate is worth keeping.
All three structures put a lien on your home. All three have closing costs. All three are real debt with real consequences if the math doesn’t work. This isn’t about tapping equity - it’s about borrowing against your house. We’ll model your total cost across all three before recommending one.
A twenty-minute conversation. Your equity, your first-mortgage rate, what the money is for, what you can carry monthly. We model all three structures and tell you which actually pencils - not which one we want to sell.
