Can you get a second mortgage for half of the equity on your house?

So that your second payment will be based on a 30 year fixed rate rather than a refi. Will it be a smart thing to do. When you sell out you can pay the second mortgage with the first and still walk with remainder of equity. Is this legal and does it make since.Can you get a second mortgage for half of the equity on your house?
I don't think you're going to find a 30-year second, and seconds usually have higher rates. Better to refi with equity out and get a new 30-year fixed.Can you get a second mortgage for half of the equity on your house?
Use real numbers to understand.





Your house is worth $100k.





First mortgage is for $50k.





Equity = $50k





Second mortgage = $25k (half of equity).





If you got a 30 year second mortgage, you have to pay off your first and your second mortgage. Your overall payments will be higher than if you just had a $75k 30 year fixed. You can't ';pay'; your second mortgage with the first, you have to pay them both.





When you sell, you get the sales price - first mortgage - second mortgage, which right now would be $25k.





Many lenders will not extend a 30 year second mortgage, because it's secondary to the first - which means that if you go bankrupt, first mortgagee gets paid off first, second mortgagee gets what's left - and often times, it isn't enough to cover the debt - that's why 2nd mortgages are generally 5 years or less.