Need cash for a project, a debt or a big expense? You may not want to touch your first mortgage. A second loan lets you borrow from your home's equity and leave the first loan alone. Best Option Mortgage offers this option. Approval depends on your file and your home.
Closed-end second mortgage: How it works
A closed-end second mortgage is a loan that sits behind your first mortgage. You get all the money at closing in one lump sum. Then you repay it in fixed monthly payments. It is not a credit line you can draw from again.
Our programs offer 15, 20 and 30 year terms. Loan sizes can start at $50,000 on some programs. You need an existing first mortgage that is at least six months old.
Closed-end second mortgage: Who may qualify
Lenders look at your credit score, your income and how much you owe on the home. The total of both loans compared to the home's value is called CLTV. Each program sets its own limit.
Some programs accept bank statements to show income. That can help if you are self-employed. A closed-end second mortgage may also be offered for a second home or investment property. Rules differ for each.
Want to learn more about equity? Read our home equity loans guide and why your equity can change everything.
Get ready before you apply
Know what you owe on your first loan and what your home may be worth. Decide how much cash you need and what it is for. Gather pay records or bank statements and a recent mortgage statement. Learn the basics in our Mortgage Terms Made Simple guide.
FAQ: What is the difference between a second loan and a HELOC?
A HELOC is a line of credit you can use over time. This loan pays out once and has a set payment. A set payment can be easier to plan for. Your advisor can compare both options.
Can I get a second mortgage without refinancing my first loan?
Yes. A standalone second loan leaves your first mortgage as it is. Your first loan must meet program rules, and it cannot be a HELOC or an interest-only loan.
How much can I borrow with a second mortgage?
It depends on your credit score, the home's value and the program. Some programs start at $50,000. Ask for a review of your numbers.
Is there a prepayment penalty on a closed-end second loan?
Not on the Equity Edge programs. They do not allow prepayment penalties. Other programs can differ, so ask your advisor.
Can I get a second mortgage if I am self-employed?
You may be able to. Equity Edge lets eligible borrowers use personal or business bank statements to show income.
Ready to see if a closed-end second mortgage fits your plan? Talk with Best Option Mortgage about the next step. All loans are subject to approval. Program terms can change at any time.
Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2026 ML Mortgage Corp. All rights reserved.