Second mortgage calculator.
A second mortgage lets you borrow against your home's equity behind your existing first mortgage — usually up to 80-85% of the home's value combined. It's equity-based, fast, and a common way to access cash when a refinance or HELOC won't work. See how much you could borrow.
Your inputs
Lender-ready summary, your assumptions baked in, and a personalized note from an advisor at Mortgage Squad Advisors.
When a second mortgage is the right tool
A second mortgage sits behind your existing first and lets you tap equity without touching that first mortgage — valuable when your first carries a low rate you don’t want to break, or when a clean refinance isn’t possible because of credit, income documentation, or timing.
How much you can borrow — a worked example
Lenders cap your combined loan-to-value (first + second). On a $900,000 home with a $500,000 first mortgage: at an 80% cap, the ceiling is $720,000, so the available second is $720,000 − $500,000 = $220,000. Push to an 85% private cap and the ceiling rises to $765,000, lifting the available second to $265,000. The higher the LTV a lender allows, the more you can draw — but the higher the risk, so the rate rises with it. Adjust the LTV slider above to see conservative versus aggressive scenarios for your own numbers.
Why the rate is higher — and interest-only
Because the second lender is repaid only after the first if anything goes wrong, it takes more risk and charges more. Institutional seconds and HELOCs price lowest; a private second typically runs ~8-13% plus disclosed lender and broker fees, pricing for position and speed rather than your credit score. Many private seconds are interest-only for a short 1-2 year term, which keeps the monthly payment low while you fix what you came to fix — the calculator shows both the interest-only and the amortized payment so you can compare.
Use it with an exit in mind
The key to using a second well is the exit. It’s best as a short bridge — consolidate high-interest debt, fund a renovation that adds value, or cover a defined gap — with a plan to refinance both mortgages into a single lower-cost loan once the reason for the second is resolved. We compare a second against a HELOC, a full refinance, and debt consolidation, disclose every fee in writing, and map the exit from day one — see how the private side works on our second mortgage page.