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Second Mortgage Calculator

See how much your rental can add without touching the first.

Most a second lien could add
$140,000
Within the cap at 80% CLTV, before underwriting

Typical range $50,000 to $1,000,000, subject to underwriting. Business-purpose investment property only. Estimate, not a rate quote or a commitment to lend.

Room (value × 80% − first)$140,000
Second lien in the math$140,000
Payment and blended rateEnter a quoted second-lien rate
Refi comparisonEnter a quoted second-lien rate first
Equity left after$80,000 (80% CLTV)
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Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

A second mortgage sits behind your first and lets you borrow against equity while the first loan stays as it is. This calculator shows the room a combined loan-to-value (CLTV) cap leaves on your rental, what the first plus the second costs each month, and how that compares with one cash-out refinance that raises the same cash. It covers business-purpose, non-owner-occupied investment property only. The loan range and CLTV cap shown are typical figures, subject to underwriting. The second-lien and refinance rates start blank: enter rates you have been quoted. Our second mortgage is a fixed rate from 6.99%, as a lump sum or a line of credit, subject to underwriting.

Related program
Second Mortgage
Borrow against rental equity and keep your first mortgage.
Read the guide
What Is a Second Mortgage on an Investment Property?
A second mortgage lets you borrow against a rental's equity, as a lump sum or a line of credit, and keep your first mortgage. How CLTV sets the limit.

Common questions

How much can I borrow with a second mortgage on a rental?
CLTV counts every lien on the property, including the new second. Take the value times the CLTV cap, then subtract your first mortgage balance. Example: $400,000 x 80% = $320,000, minus a $180,000 first leaves $140,000. Typical loans run $50,000 to $1,000,000, subject to underwriting. With a $290,000 first, the same property leaves $320,000 - $290,000 = $30,000, which is under the $50,000 minimum.

Sources: selling-guide.fanniemae.com

How is the blended rate worked out?
It is the balance-weighted average of your first and your second: (first balance x first rate + second balance x second rate) / total debt. With a $180,000 first and a $140,000 second, the first carries 56.25% of the weight ($180,000 / $320,000) and the second 43.75%, so the blended rate sits 56.25% of the way from the second's rate to your first mortgage's rate. Enter your own rates; the calculator prints the result. A cash-out refinance of the same $320,000 resets the whole balance at the refinance rate. Keeping the first costs less per month when that refinance rate, over the refinance term you entered, sits above the rate that ties the calculator prints.
Should I take a second mortgage or do a cash-out refinance?
The gap between your first mortgage rate and today's refinance rate drives most of the answer. A second leaves the first loan's rate and term in place. A refinance replaces both, so that rate is gone. The calculator compares monthly payments for the same cash. It does not include closing costs on either loan, and the terms differ, so a lower payment can still mean more interest over the years. Run both with real quotes before you decide.
What should I check on my first mortgage before adding a second?
Your first mortgage may restrict junior liens: the standard 1-4 Family Rider, which Fannie Mae requires on the one- to four-unit investment loans it buys and which some other lenders also use, bars one without the first lender's written permission. Read your loan documents and ask your servicer. Also plan for later: if you refinance the first, the second-lien holder generally has to sign a resubordination agreement to stay in second position.

Sources: selling-guide.fanniemae.com, deephavenmortgage.com

Does this apply to my primary residence or a second home?
No. This is a business-purpose product for non-owner-occupied investment property. Loans for business purpose only. Not a commitment to lend.

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