Put your equity to work with a Second Mortgage
Features You’ll Love
A second mortgage lets you tap into the equity you’ve built in your home without touching your first mortgage. It’s a fixed, closed-end loan with a shorter term, designed to help you cover major expenses like home improvements, debt consolidation, or life events.
No payments for 90 days*
Rates as low as 6.24% APR**
Get up to $250,000
Minimal closing costs
No pre-payment penalties
Easy online application process
Fixed rate and term, no market-induced fluctuations
Choose a term that fits your budget, with options up to 15 years (180 months)
Check current interest rates and run the numbers to estimate your monthly mortgage payments before making a decision.
Most homeowners choosing to tap into their equity are deciding between a second mortgage and a HELOC. Compare the key differences to find the option that works best for how you plan to use your funds.
Second Mortgage
HELOC (Home Equity Line of Credit)
How You Access Funds
Lump sum upfront
5-year draw period, 10-year repayment period
Interest Rate
Fixed rate
Variable rate
Monthly Payments
Fixed monthly payment
Minimum monthly payment is a % of your balance during the draw period, then becomes a fixed payment during the repayment period
Loan Structure
One-time loan
Revolving line of credit (reuse as you repay)
Access Period
Full amount received upfront
5-year draw period + 10-year repayment
How Much You Can Borrow
Up to 80% LTV*** (max. $250,000)
Up to 80% LTV*** (max. $250,000)
Best For
One-time projects or purchases with clear payoff timeline
Ongoing or phased projects with flexible access to funds
Considerations
Fixed amount so you have to apply again if you need more
Variable rates may change, and lower early payments can mean more interest
Key Advantages
Predictable payments and lower interest rate
Flexible fund access for 5 year and lower monthly payments
Think HELOC is the better fit for you?
How do I calculate how much equity I have available?
Your available equity is your home’s current value minus what you still owe on your mortgage and any additional loans or lines of credit secured by the home.
What is the maximum loan-to-value (LTV)?
SunWest lends up to 80% of your home’s appraised value.
What is the minimum loan amount for a second mortgage?
The minimum loan amount is $5,000.
What’s the difference between a first mortgage and a second mortgage?
A first mortgage is the primary loan used to purchase or refinance your home.
A second mortgage is an additional loan taken out against your home’s equity. It sits behind your first mortgage and uses your available equity as collateral.
What’s the difference between a second mortgage and a HELOC?
Both use your home’s equity, but they work differently.
A second mortgage gives you a lump sum with fixed monthly payments over a set term.
A HELOC (home equity line of credit) works more like a credit card. You’re approved up to a limit and can draw from it over time. With a SunWest HELOC, you can use the line for up to 5 years, making payments based on your balance. After that, it converts to a fixed repayment period of up to 10 years. HELOCs also have a variable rate that can increase up to 1% every 6 months.
Should I get a second mortgage or a HELOC?
It depends on how you plan to use the funds.
A second mortgage is best if you need a specific amount upfront and prefer fixed payments and a fixed rate.
A HELOC is better if you want flexibility by borrowing as needed over time. This can be helpful for ongoing expenses, like home projects completed in stages.
Do second mortgages affect private mortgage insurance (PMI)?
Usually no, but it depends on your lender. Most lenders require 15–20% equity to qualify for a second mortgage. Once you reach 20% equity, PMI is typically no longer required.
If a lender allows a second mortgage with less than 20% equity, it may affect when you can stop paying PMI.
*APR = Annual Percentage Rate. First payment will be due 90 days from closing of the loan. Loan interest continues to accrue during 90-day deferred payment period. Offer valid as of January 1, 2026 and subject to change at any time.
** LTV = Loan to Value.
See a representative for details.
.1. Rates listed subject to change and based on the lowest current offer. Rates are determined by factors such as, but not limited to, loan term, credit score, and home value. Minimum and maximum loan balances may vary by term. All calculations listed in the chart above are estimates to illustrate loan and rate cost and should not be used as a formal quote. Please speak with a mortgage lender representative to quote your specific rate and payment.
