Fixed Second Mortgage | Lump Sum at a Fixed Rate, First Mortgage Untouched

Reviewed by Ahoo Khalessi, Division Manager & Loan Officer, NMLS #2239510 · Last updated June 2026

What is a fixed second mortgage?

It is a second lien behind your first mortgage that pays you a single lump sum at closing, repaid at a fixed rate over a set term. Because it sits behind your first mortgage, your existing first-mortgage rate is never touched.

Why people choose it over a cash-out refinance: if your first mortgage is at a low rate, refinancing would replace it at today's higher rate. A fixed second leaves that rate alone and only adds a second, predictable payment.

Fixed second vs. HELOC

A fixed second is a lump sum at a fixed rate and payment — best when you know the amount you need (debt consolidation, renovation, a specific purchase). A HELOC is a revolving line at a usually variable rate — best for flexible or ongoing needs.

How much can you get?

Up to a combined loan-to-value of roughly 80–90% in most cases. CTC Equity can often fund up to $400,000 with no appraisal required, and place fixed seconds up to $4 million for larger needs.

Why CTC Equity for fixed seconds

Ahoo Khalessi started the home equity department at Rocket Mortgage and made home equity her specialty in wholesale. With 160+ lenders, nationwide and local, CTC Equity places fixed seconds — including large and complex ones — that most brokers can't.

Common questions

What is a fixed second mortgage?+

A second lien behind your first mortgage that gives you a lump sum at a fixed rate and payment, leaving your first mortgage untouched.

How is a fixed second different from a HELOC?+

A fixed second is a one-time lump sum at a fixed rate; a HELOC is a revolving line you draw from, usually at a variable rate. Both sit behind your first mortgage.

Do I need an appraisal?+

Often no — CTC Equity can provide up to $400,000 with no appraisal required. Larger amounts may need a valuation.

How much can I borrow with a fixed second?+

Up to $4 million, subject to equity, credit, and lender guidelines — a size rarely available elsewhere.

Will it change my first mortgage rate?+

No. A fixed second is separate from your first mortgage, so your existing rate and balance stay the same.

What can I use the funds for?+

Common uses include debt consolidation, home improvement, investment, or a down payment on another property.

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Fixed second mortgage: a lump sum at a fixed rate, first mortgage untouched