Colorado Home Loans - Second Mortgages

Home ownership in Denver and throughout Colorado has the benefit that it allows you to use your home as collateral and borrow needed money against it, by taking a second mortgage. There are now a wide selection of loans available to fit your needs, and it's much easier to get a second mortgage on your home.

The Second Mortgage vs. the First Mortgage

A second mortgage is based on the amount of equity or interest or ownership you have in that property, thus based on the difference between the current value of the property and the amount you owe on it. Second mortgages are arranged for various purposes. If you have gathered enough equity, another option is to refinance your home and borrow funds in excess of your current loan balance. Usually, a second mortgage carries a higher rate of interest than a first mortgage. So if interest rates are low or start decreasing, refinancing becomes a more appropriate option. Since underwriting guidelines are less strict for second mortgages, it usually takes less time and effort to get a second mortgage than to refinance a loan.

Choosing a Second Mortgage

  • Second mortgages are different from first mortgages. They often carry a higher interest rate and are usually for a shorter period of time.
  • Traditionally, second mortgage loans are offered with a fixed amount and a predetermined repayment schedule.

Be sure to understand how much your monthly payments will be and what they include.


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Front Range Mortgage, LLC
Your Colorado Mortgage Specialist
Denver - (303) 524-9907
Colorado Springs - (719) 540-2020
Toll Free - (877) 524-9907