Second Mortgage vs. Refinancing: What Is the Difference?
Both approaches may provide access to home equity, but they affect the existing first mortgage differently.
Refinancing replaces or restructures financing
A refinance generally changes or replaces the existing mortgage, potentially changing the amount, rate, term or other features.
A second mortgage sits behind the first
A second mortgage is separate financing secured against the same property while the first mortgage remains in place.
Why keeping the first mortgage may matter
If the existing first mortgage has favourable terms or a significant cost to break, leaving it in place can be one factor in the comparison.
Compare both structures as a whole
Look at rates, fees, penalties, monthly payments, term and repayment strategy rather than comparing a single rate in isolation.
EXPLORE YOUR OPTIONS
Explore Second Mortgage →Ready to take the next step?
Conixi can connect you with a licensed mortgage professional to review your situation.