What is a Second Lien Home Equity Loan?
Turn your built-up equity into cash - at a fixed rate.
A second lien home equity loan - a type of second lien - lets you convert the equity you've built into a one-time lump sum, repaid at a fixed rate over a set term.
Because it sits behind your first mortgage, your existing loan and its rate stay exactly where they are. You get predictable monthly payments and a clear payoff timeline - without giving up the low rate you locked in. It's a strong fit when you know the amount you need - for a renovation, a large purchase, or consolidating higher-interest debt - and want the stability of a fixed payment.
Unlike a home equity line of credit (HELOC), a fixed-rate home equity loan provides a lump-sum loan with a fixed interest rate and predictable monthly payments for the life of the loan.
Ready to explore your home equity options?
See how much cash you could access →
Ready to explore your home equity options?
See how much cash you could access →
Fixed Second Lien vs. HELOC: Which Cash-Out Option Fits You
A fixed second lien gives you one lump sum of cash with a fixed rate and predictable monthly payment for easy budgeting, while a HELOC lets you draw funds as needed with a variable rate, so payments can shift up or down over time. Choose the fixed second lien if you want payment stability, or the HELOC if you want flexible access to funds and can handle less predictable payments.
Fixed Rate vs. Variable Rate
If you know how much money you need today, a fixed-rate second lien can provide the confidence of a predictable monthly payment and interest rate for the life of the loan.
A HELOC typically has a variable interest rate, which means your rate-and your monthly payment-can change as market interest rates change.
How 2ndLiens.com Works
Answer a Few Questions
Share your goals and how much equity you'd like to access. We'll explain whether a home equity loan is the right fit.
Review Your Options
We lay out the numbers clearly - no pressure and no jargon.
Apply & Close
When you're ready, your loan is originated through Town Lake Lending with fast, clear communication throughout.
Reasons to Get a 2nd Lien Home Equity Loan
Home Improvements
Renovations that add value, like a kitchen remodel or new roof.
Debt Consolidation
Paying off higher-interest debt (credit cards, personal loans) with a lower, fixed rate.
Large One-Time Expenses
Medical bills, tuition, a wedding - anything where you need a known amount upfront.
Why a Second Lien Home Equity Loan
Fixed Rate
Lock in a predictable rate and payment for the life of the loan.
One-Time Lump Sum
Receive your funds all at once - ideal when you know exactly what you need.
First Mortgage Untouched
Your existing low-rate first mortgage stays right where it is.
Predictable Payments
Your rate and monthly payments stay fixed, making it easier to budget than a HELOC, where rates and payments can change over time.
Common Questions
If you have a low first-mortgage rate, a traditional, first lien, cash-out refinance replaces your entire loan at today's rates - so you'd give up that low rate on your whole balance just to access a portion of your equity. A second lien lets you keep your first mortgage exactly as it is and borrow only against your equity.
Essentially, yes. "Second lien," "second mortgage," and "second lien home equity loan" all describe a loan secured by your home that sits behind your first mortgage. What matters is that your existing first mortgage - and its rate - stays in place while you borrow against your equity.
It's your equity to use. Common purposes include home improvement, consolidating higher-interest debt, tuition, or other major expenses. It can also be used to fund a down payment on a second home or investment property purchase, lot/land purchase, or other general investments.