HomeSafe Second®: Access Your Equity Without Replacing Your First Mortgage
Keep your current first mortgage and access your home equity without adding a required monthly mortgage payment.*
If you've built substantial equity in your home but don't want to refinance your existing mortgage, HomeSafe Second® gives eligible homeowners another way to access that equity.
HomeSafe Second is a second-lien reverse mortgage designed for eligible older homeowners. Instead of replacing your current mortgage, it sits behind it as a second lien.
That means you may be able to keep the mortgage rate you already have, access a portion of your home's equity, and avoid adding a required monthly mortgage payment on the new loan.*
For homeowners with a low-rate first mortgage, that can be an important difference.
Why Consider HomeSafe Second®?
No Required Monthly Mortgage Payment*
Unlike a traditional HELOC or home equity loan, HomeSafe Second does not require monthly principal and interest payments on the new loan.*
Interest and applicable charges accrue to the loan balance over time.
You must continue to meet the terms of the loan, including paying property taxes, homeowners insurance, applicable HOA charges, maintaining the property, and continuing to make any required payments on your existing first mortgage.
Keep Your Existing First Mortgage
Have a first mortgage with a rate you don't want to give up? You don't have to refinance it simply to access your equity.
HomeSafe Second leaves your existing first mortgage in place, allowing you to access available equity through a separate second-lien reverse mortgage.
This can be especially attractive to homeowners who secured low mortgage rates in previous years.
Access $50,000 to $1 Million
Depending on program requirements and your individual circumstances, qualified homeowners may be able to access $50,000 to $1 million of their available home equity options.
The amount available depends on factors such as:
- Your age
- Property value
- Existing mortgage balance
- Available home equity
- Property type & location
- Current program guidelines
Fixed Interest Rate
HomeSafe Second offers a fixed interest rate, providing greater predictability than a traditional HELOC that may have a variable rate.
The interest rate does not change simply because market interest rates increase.
Because monthly principal and interest payments are not required, accrued interest is generally added to the outstanding loan balance.
Non-Recourse Protection
HomeSafe Second includes non-recourse protection.
Generally, when the loan becomes due and payable, the borrower or estate will not be required to repay more than the value of the home, subject to the terms and conditions of the loan.
Who Is HomeSafe Second® Designed For?
HomeSafe Second may be worth considering if you:
- Meet the applicable minimum age requirement
- Have substantial equity in your home
- Are current on your existing first mortgage
- Want to access home equity without refinancing your first mortgage
- Want to avoid adding a required monthly mortgage payment on the new loan*
- Prefer a fixed-rate option over a variable-rate HELOC
- Need funds for home improvements or major expenses
- Want additional financial flexibility during retirement
- Want to consolidate certain higher-interest debts
- Want access to equity while preserving your existing mortgage
Minimum Age Requirements
HomeSafe Second is generally available to homeowners:
* Additional borrower, property, equity, credit, and program requirements apply.
HomeSafe Second® vs. a Traditional HELOC
| Feature | HomeSafe Second® | Traditional HELOC |
|---|---|---|
| Required monthly payment on new loan | No* | Typically yes after funds are drawn |
| First mortgage | Remains in place | Remains in place |
| Interest rate | Fixed | Typically variable |
| Type of loan | Second-lien reverse mortgage | Home equity line of credit |
| Access to funds | Based on approved loan structure | Revolving credit line |
| Interest | Accrues to loan balance | Typically paid through monthly payments |
| Age requirement | Yes | Generally no reverse-mortgage age requirement |
| Non-recourse protection | Yes, subject to loan terms | Generally no |
| Best suited for | Eligible older homeowners seeking equity without a required new monthly mortgage payment* | Homeowners wanting revolving access to equity who can make monthly payments |
Neither option is automatically better. The right choice depends on your financial goals, equity, existing mortgage, income, age, and how you intend to use the funds.
HomeSafe Second® vs. a Cash-Out Refinance
A cash-out refinance replaces your existing first mortgage with an entirely new mortgage.
That can be an issue if you already have an attractive interest rate.
For example, if your current first mortgage has a low fixed rate, refinancing the entire balance at today's available rates could increase your borrowing costs.
HomeSafe Second may allow you to access available equity without refinancing your existing first mortgage.
Your original first mortgage stays in place under its existing terms, while HomeSafe Second is added as a second lien.
What Can You Use the Money For?
Homeowners may use their available proceeds for a variety of financial needs, subject to program requirements.
Your MyLoanDesk loan specialist can help you evaluate whether using home equity makes sense for your particular situation.
Frequently Asked Questions About HomeSafe Second®
What is HomeSafe Second?
HomeSafe Second is a second-lien reverse mortgage that allows eligible homeowners to access a portion of their home equity while keeping their existing first mortgage in place.
Do I have to make monthly payments on HomeSafe Second?
HomeSafe Second does not require monthly principal and interest payments on the new loan.* Interest and applicable charges accrue to the loan balance. Borrowers must continue meeting the loan requirements, including paying property taxes, homeowners insurance, applicable HOA charges, maintaining the property, and remaining current on any existing first mortgage.
Does HomeSafe Second replace my current mortgage?
No. HomeSafe Second is a second lien. Your existing first mortgage remains in place and continues under its existing terms.
Who qualifies for HomeSafe Second?
HomeSafe Second is designed for eligible older homeowners with sufficient home equity. Minimum age requirements are generally 55 or older, with higher minimum ages in certain states, including 60 in Washington and 62 in Texas. Property, equity, credit, existing mortgage, occupancy, and other program requirements also apply.
How much equity can I access?
Qualified homeowners may be able to access between $50,000 and $1 million, depending on current program guidelines, property value, existing liens, available equity, age, and other eligibility factors.
Is the HomeSafe Second interest rate fixed?
Yes. HomeSafe Second offers a fixed interest rate, unlike many HELOCs that use variable interest rates. Interest accrues on the outstanding loan balance according to the terms of the loan.
How is HomeSafe Second different from a HELOC?
One of the biggest differences is the required monthly payment. A traditional HELOC generally requires monthly payments after you borrow funds, and its interest rate is commonly variable. HomeSafe Second is a second-lien reverse mortgage with a fixed rate and no required monthly principal and interest payment on the new loan.*
Can I get HomeSafe Second if I already have a mortgage?
Yes, subject to qualification. HomeSafe Second is specifically designed to allow eligible homeowners to keep an existing first mortgage in place while accessing additional home equity. You must remain current on your existing mortgage and continue making its required payments.
Does the HomeSafe Second balance increase over time?
Yes. Because you are not required to make monthly principal and interest payments on HomeSafe Second,* interest and applicable charges generally accrue and are added to the loan balance. This means the amount you owe can increase over time and your remaining home equity may decrease.
When does HomeSafe Second have to be repaid?
The loan becomes due and payable when a maturity event occurs under the loan documents. This can include circumstances such as the borrower selling the home or no longer meeting applicable occupancy or other loan requirements. Your loan specialist will explain the repayment and maturity provisions before you decide whether the program is appropriate for you.
Is HomeSafe Second a HELOC?
No. HomeSafe Second is not a HELOC or traditional home equity loan. It is a second-lien reverse mortgage designed for eligible older homeowners.
Already Have a Low Mortgage Rate?
Don't automatically give it up just to access your equity. If you secured your first mortgage when interest rates were lower, replacing that mortgage through a cash-out refinance may not be the only way to access your home's equity.
HomeSafe Second may allow you to:
- Keep your existing first mortgage.
- Keep its existing interest rate and terms.
- Access a portion of your available equity.
- Avoid adding a required monthly mortgage payment on the second loan.*
That's why HomeSafe Second can be worth comparing with a HELOC, home equity loan, and cash-out refinance before making a decision.
See If HomeSafe Second® Fits Your Situation
Your home may represent one of your largest financial assets. If you need access to that equity, the first question shouldn't simply be, "Can I borrow against my home?"
"What's the best way for me to access my equity without unnecessarily changing the mortgage I already have?"
MyLoanDesk can review your situation and help you compare HomeSafe Second, HELOCs, home equity loans, cash-out refinancing, and other available mortgage options.
No obligation to review your available options.
Important Disclosures
*No required monthly principal and interest payment applies to the HomeSafe Second loan, provided the borrower continues to meet all applicable loan obligations. Interest and applicable charges accrue to the loan balance.
Borrowers must continue to comply with the terms of their existing first mortgage and HomeSafe Second loan documents, including paying property taxes, homeowners insurance, applicable homeowners association charges, maintaining the property, and satisfying applicable occupancy and other requirements.
HomeSafe Second® is a proprietary second-lien reverse mortgage product. Program availability, minimum age, loan amounts, interest rates, fees, property eligibility, underwriting requirements, and other terms may vary and are subject to change.
HomeSafe Second is not a HELOC or traditional home equity loan. Not all borrowers or properties will qualify.
Consult your loan documents and a qualified mortgage professional regarding the specific terms applicable to your transaction.