Access your home equity as a lump sum with a fixed rate and predictable payments — all without touching your first mortgage.
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Fixed Rate, Fixed Payment
Lock in a rate that never changes. Your monthly payment stays the same for the entire loan term — no surprises from rising rates.
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Lump Sum at Closing
Receive your full loan amount upfront as a single lump sum. No draw periods, no access restrictions — funds available immediately.
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Keep Your First Mortgage
Your existing mortgage stays untouched. Keep your current rate — especially valuable if you locked in a low rate years ago.
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Predictable Repayment
Fixed monthly payments from day one. Know exactly what you’ll pay every month for the entire term — 5, 10, 15, or 20 years.
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Debt Consolidation
Replace high-interest credit cards and loans with a single, lower-rate second mortgage payment. Even at 8–10%, you save vs. 20–29% card rates.
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Lower Total Cost
Avoid the higher closing costs and rate reset of a full cash-out refinance. A second mortgage is often the most cost-effective way to access equity.
Eligibility
Who Qualifies for a Second Mortgage?
Second mortgages are available to homeowners with sufficient equity. Here’s what you need.
Property & Equity Requirements
Equity Position
Sufficient home equity — combined LTV typically up to 85–90%
Current on your existing first mortgage payments
No recent late payments on first mortgage (last 12 months)
Property Type
Primary residence (most common)
Second home (select programs)
Investment property (stricter requirements)
Eligible Structures
Single-family homes
Condos, townhouses, and planned unit developments
Multi-unit properties (up to 4 units)
How Much Equity Do You Have?
Quick estimate: take your home’s current value, multiply by 0.85, then subtract your first mortgage balance. That’s roughly your maximum second mortgage amount. Use our calculator below for a detailed estimate.
Borrower Requirements
Credit Score
Most programs require 620–680 minimum
Texana Bank offers options from 600+ with strong equity
Higher scores qualify for better rates
Income & Employment
Stable, verifiable income
2 years employment history (or equivalent)
DTI ratio typically up to 43–50%
Documentation
Pay stubs, W-2s, or tax returns
Bank statements (2 months)
Current mortgage statement
Homeowner’s insurance declaration
Loan Amounts
Typical range: $10,000 to $500,000+
Terms: 5, 10, 15, 20, or 30 years
How It Works
How a Second Mortgage Works
A second mortgage is a separate loan placed behind your existing first mortgage. You receive a lump sum at closing and repay it with fixed monthly payments over a set term. Your first mortgage stays completely untouched.
Your first mortgage stays in place — same rate, same payment
A second lien is recorded on the property
You receive a lump sum at closing
Fixed interest rate for the life of the loan
Fixed monthly payments over 5–30 year terms
Interest may be tax-deductible if used for home improvements
If you have a low rate on your first mortgage, a cash-out refinance would reset that rate — potentially costing you more over time. A second mortgage preserves your existing rate.
Example: If your first mortgage is at 3.5% and current rates are 6.5%, a cash-out refi would increase your rate on the entire balance. A second mortgage at 8.5% only applies to the new money.
Explore all refinance and equity options in our Refinance Hub →
Costs & Fees
Second Mortgage Costs
Understand the typical costs associated with a second mortgage. Exact fees depend on your loan amount, lender, and location.
Fee Type
Typical Range
Notes
Origination Fee
0 – 2% of loan
Some lenders waive for larger loans
Appraisal Fee
$350 – $600
Required to determine home value
Title Search & Insurance
$300 – $1,000
Ensures clear title for second lien
Recording Fees
$50 – $250
County filing of new lien
Credit Report
$30 – $75
Tri-merge credit pull
Total Closing Costs
2 – 5% of loan
On a $75K loan: $1,500 – $3,750
Compare Total Cost vs. Cash-Out Refinance
A cash-out refinance typically has closing costs of 2–5% on your entire loan balance (first mortgage + cash out). A second mortgage only charges closing costs on the new money — often a much smaller amount.
✓ Cash-out refi on $300K balance: $6,000–$15,000 in closing costs
✓ 2nd mortgage for $75K: $1,500–$3,750 in closing costs
✓ Plus you keep your existing first mortgage rate
Note: Actual costs vary by lender, loan amount, and property location. Texana Bank provides a detailed Loan Estimate before you commit.
Loan Comparison
2nd Mortgage vs. HELOC
Both tap your home equity without replacing your first mortgage. Here’s how they compare.
2nd Mortgage
HELOC
Rate Type
Fixed
Variable (some fixed options)
Disbursement
Lump sum at closing
Revolving credit line
Monthly Payment
Fixed P&I
Interest-only during draw period
Rate Risk
None — rate is locked
Payments can increase with rates
Best For
Specific lump sum need
Ongoing, flexible access
Draw Period
N/A (receive all at once)
Typically 10 years
Repayment Term
5 – 30 years fixed
10 – 20 years after draw
Closing Costs
2 – 5%
0 – 2% (sometimes waived)
Keep 1st Mortgage
✓ Yes
✓ Yes
Payment Certainty
Fully predictable
Can fluctuate
*Interest on both products may be tax-deductible if funds are used for home improvements. Consult your tax advisor.
Payment Calculator
Estimate Your Second Mortgage Payment
See your estimated monthly payment and available equity based on your home value and existing mortgage.
Estimates only. Actual rates and payments will vary based on credit, income, and property. Subject to credit approval.
The Process
Your Second Mortgage Timeline
From application to funding, here’s what to expect at every step.
1
Application & Pre-Qualification
1–2 Days
Complete a quick application with Texana Bank. We’ll run a soft credit check (won’t affect your score), review your equity position, and give you a clear picture of how much you can borrow and at what rate.
2
Appraisal & Documentation
5–10 Days
We order a property appraisal to confirm your home’s current value and verify your income, assets, and employment documents. Your loan officer coordinates everything and keeps you updated.
3
Underwriting & Approval
5–10 Days
Our underwriting team reviews your complete file, verifies the title, and issues a clear-to-close. We handle the coordination with your first mortgage lender for subordination if needed.
4
Closing & Funding
1–3 Days
Sign your closing documents and receive your lump sum. Funds are typically available within 3 business days after closing. Use them for home improvements, debt consolidation, or any other purpose.
Frequently Asked Questions
Second Mortgage FAQs
Answers to the most common questions about second mortgages, home equity loans, rates, and costs.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A second mortgage is a loan taken against the equity in your home while your first mortgage remains in place. It creates a second lien on the property. You receive a lump sum at closing and repay it with fixed monthly payments over a set term, typically 5 to 30 years. Unlike a HELOC, the rate is fixed and the payment never changes.
A second mortgage gives you a fixed-rate lump sum with predictable monthly payments. A HELOC is a revolving line of credit with a variable rate — you draw funds as needed during a draw period, but your payment can change as rates change. Choose a second mortgage when you need a specific amount upfront with payment certainty.
Most lenders allow a combined loan-to-value (CLTV) ratio of 85% to 90%. For example, if your home is worth $400,000 and you owe $250,000 on your first mortgage, you could potentially borrow up to $90,000 to $110,000 with a second mortgage. Your actual amount depends on equity, credit, and income.
Most second mortgage programs require a minimum credit score of 620 to 680. However, Texana Bank Mortgage offers options for borrowers with scores as low as 600 depending on equity, income, and other compensating factors. Higher credit scores typically qualify for better rates.
Second mortgage rates are generally higher than first mortgage rates because the lender is in a subordinate lien position. Rates typically range from 7% to 12% depending on your credit score, loan-to-value ratio, and loan amount. The rate is fixed for the life of the loan, so your payment never changes.
Yes. Debt consolidation is one of the most common uses for a second mortgage. You can use the lump sum to pay off high-interest credit cards, auto loans, personal loans, and other debts — replacing multiple payments with a single, lower fixed-rate payment. Even at 8–10%, a second mortgage rate is often much lower than credit card rates of 20–29%.
You can use second mortgage funds for virtually any purpose: home improvements and renovations, debt consolidation, education expenses, medical bills, emergency reserves, business investment, or major purchases. There are no restrictions on how you use the funds, though using them for home improvements may provide tax benefits.
No. This is the primary advantage of a second mortgage over a cash-out refinance. Your existing first mortgage stays completely untouched — same rate, same payment, same terms. The second mortgage is a separate loan with its own rate and payment. If you locked in a low rate on your first mortgage, a second mortgage preserves it.
Second mortgage closing costs typically range from 2% to 5% of the loan amount and may include an origination fee, appraisal fee, title search and insurance, recording fees, and credit report fee. Some lenders offer reduced closing cost options. Texana Bank can walk you through exact costs for your situation.
A second mortgage typically takes 2 to 4 weeks from application to closing. The process includes application and credit review, property appraisal, title search, underwriting, and closing. Texana Bank works to close as quickly as possible while ensuring a smooth process.
Second mortgage interest may be tax-deductible if the funds are used to buy, build, or substantially improve your home — subject to the combined mortgage interest deduction limit of $750,000 ($375,000 if married filing separately). If funds are used for other purposes like debt consolidation, the interest is generally not deductible. Consult your tax advisor.
When you sell your home, both the first mortgage and second mortgage are paid off from the sale proceeds. The first mortgage is paid first, then the second mortgage. Any remaining equity goes to you. If you owe more than the home is worth, you may need to negotiate with lenders or bring cash to closing.
Some lenders offer second mortgages on investment properties, though the requirements are stricter. You’ll typically need more equity (lower CLTV), a higher credit score, and may face a higher interest rate compared to a primary residence. Texana Bank can discuss available options for your specific situation.
A cash-out refinance replaces your entire first mortgage with a new, larger loan and gives you the difference as cash. A second mortgage adds a separate loan behind your existing first mortgage. The key difference: a cash-out refinance resets your first mortgage rate (potentially higher in today’s market), while a second mortgage preserves your existing rate.
Yes. Most second mortgages allow early payoff without a prepayment penalty, though terms vary by lender and program. Paying off your second mortgage early saves you interest over the remaining term. Always confirm prepayment terms before closing.
CLTV is the total of all loans secured by your property divided by your home’s appraised value. For example, if your home is worth $400,000, your first mortgage balance is $250,000, and you want a $50,000 second mortgage, your CLTV would be 75% ($300,000 / $400,000). Most second mortgage programs allow CLTV up to 85–90%.
Yes, most second mortgage lenders require a property appraisal to determine your home’s current market value and calculate your available equity. Some programs may accept an automated valuation model (AVM) or desktop appraisal for lower loan amounts, which can speed up the process.
Missing second mortgage payments can result in late fees, credit score damage, and ultimately foreclosure — similar to any mortgage. If you’re struggling with payments, contact your lender immediately. Options may include loan modification, forbearance, or refinancing. The second mortgage lender can foreclose, but the first mortgage must be satisfied first from any sale proceeds.
Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has zero impact on your credit score. A hard inquiry only occurs when you formally apply and move forward with a full application, and even then, multiple mortgage inquiries within a 14–45 day window count as a single inquiry.
Reviews
What Borrowers Say About Texana Bank
Real reviews from real borrowers. See why homeowners trust Texana Bank Mortgage for their equity needs.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
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Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
A
Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Tap Your Equity?
Find out how much you can access with a second mortgage. Our equity specialists are here to guide you every step of the way.
