How Much Can You Borrow with a Second Mortgage?

Home Equity June 02, 2025 Blog Post

If you’re a homeowner looking to renovate your space, consolidate debt, or cover a major expense, a second mortgage could be a smart way to tap into your home’s value. But how much can you actually borrow? Let’s break it down.

What Is a Second Mortgage?

A second mortgage is a loan that allows you to borrow against the equity in your home and comes with the added benefit of not impacting your first mortgage. Common types include Home Equity Loans (HELOANs), which offer fixed rates, and Home Equity Lines of Credit (HELOCs), which offer both variable and fixed-rate options, along with flexible access to funds.

How Much Equity Do You Need?

Your home equity is the difference between what your home is worth and what you still owe on your mortgage. To determine how much you can borrow, lenders look at your Combined Loan-to-Value ratio (CLTV).

At Spring EQ, we offer second mortgages up to 90% CLTV, which means you may be able to borrow up to 90% of your home’s value, minus your current mortgage balance.

For example, if your home is worth $400,000 and you owe $250,000, your available equity at 90% CLTV could be up to: $400,000 x 0.90 - $250,000 = $110,000.

What’s the Max You Can Borrow?

Loan amounts vary based on your home’s value, your credit profile, income, and debt-to-income ratio (DTI). At Spring EQ, qualified borrowers may be able to access up to $500,000, depending on the equity available and loan type selected.

We also offer both fixed and adjustable-rate options, so you can choose the product that works best for your goals. Whether that’s a lump sum or flexible access over time, we’ve got a solution for you.

Is a Second Mortgage Right for You?

A HELOC or HELOAN can be a great option for:

  • Paying off high-interest debt

  • Financing home improvements

  • Covering education or medical expenses

  • Purchasing a second home or investment property

Want to go over your options and see how much you can borrow? Follow the link below.

See Your Rate Instantly

Please Note: Spring EQ does not provide tax, legal, investment or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.

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