A second mortgage allows you to borrow against the equity in your home without refinancing your primary mortgage. This tool helps you understand how a second mortgage can affect your monthly budget and overall financial situation.
By entering details about your existing first mortgage and the new second mortgage you're considering, this calculator provides a comprehensive breakdown. It shows your combined total monthly payment, including both mortgages, and calculates your new loan-to-value (LTV) and combined loan-to-value (CLTV) ratios.
The calculator also helps you determine if you'll be required to pay Private Mortgage Insurance (PMI). PMI is typically required if your combined loan-to-value ratio exceeds a certain percentage (often 80%), and this calculator factors that into your total monthly payment.
Second mortgages can be used for various purposes, such as funding home renovations, consolidating high-interest debt, or paying for major expenses. This calculator provides clear data to help you make a smart, informed decision about leveraging your home equity.
Use this tool to plan your finances and understand the full financial picture before taking on a second mortgage. Knowing your total monthly obligations and ratios will help you manage your budget effectively and avoid any unexpected costs.