Second Mortgage Payment Calculator to Calculate Home Equity Payment

Second Mortgage Payment Calculator Sign

This free online calculator will calculate the monthly principal and interest payment needed to repay a home equity loan, plus calculate the total interest you will pay by the time you pay off the loan.

Plus, unlike other 2nd mortgage calculators, this calculator will calculate how many hours you will need to allocate to working to pay just the interest on the home equity loan.

Finally, the calculator also includes an optional monthly or annual amortization schedule so you can see how the interest adds up over time.

Note: If you would like to calculate the size of the home equity loan you might qualify for, please visit the Home Equity Loan Calculator.

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Second Mortgage Payment Calculator

Calculate your home equity loan payment, including the principal and interest breakdown.

Special Instructions

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
HEL amt:2nd mtg amt:Second mortgage amount:Second mortgage loan amount:

Second mortgage loan amount:

Enter the dollar amount of the second mortgage or home equity loan (principal amount, without dollar sign or comma).

Int rate:Interest rate:Annual interest rate:Annual interest rate:

Annual interest rate:

Enter the annual percentage rate (APR) of the home equity loan, without the percent sign.

# of years:Number of yrs:Loan term in years:2nd loan term in number of years:

Term of 2nd loan in number of years:

Enter the term of the second mortgage in number of years.

RHWRHW (optional)Real hourly wage (optional)Real hourly wage (optional):

Real hourly wage:

Optional: If you would like the second mortgage payment calculator to calculate the number of hours you will have to work just to pay the second mortgage interest charges, enter your real hourly wage in this field. Clicking on the link will open the Real Hourly Wage Calculator in a new window.

Schedule?Incl schedule?Include amortization schedule?Include amortization schedule?

Include amortization schedule?

If you would like the results to include an amortization schedule, select either "Monthly" or "Annual" from the drop-down menu. Otherwise select "None".

Payment:2nd mtg pmt:Monthly 2nd mortgage payment:Monthly second mortgage payment:

Monthly second mortgage payment:

Based on your entries, this how much your second mortgage payment will be. This does not include property tax or insurance payments.

Total pmts:Total payments:Total 2nd mortgage payments:Total of all second mortgage payments:

Total of all second mortgage payments:

Based on your entries, this is the total of all of your monthly second mortgage payments.

Interest:Interest cost:Interest cost:Interest cost:

Interest cost:

Based on your entries, this is how much interest you will pay between now and when you finish the 2nd mortgage repayment.

Work hrs:Work hours:Work hours to pay interest:Number of work hours to pay interest charges:

Number of work hours to pay interest charges:

Based on your entries, this is how many hours you will need to allocate to working in order to pay just the 2nd mortgage interest charges. This does not include all of the hours you will need to work to pay for the down payment, first mortgage, and all of the upfront and ongoing costs that come with buying and owning a home.

Work wks:Work weeks:Work weeks to pay interest:40-hour work weeks to pay interest charges:

40-hour work weeks to pay interest charges:

Based on your entries, this is how many 40-hour work weeks it will take you to just to pay the second mortgage interest charges. Again, this does not include all of the 40-hour work weeks it will take you to pay for the down payment, first mortgage, and all of the upfront and ongoing costs that come with buying and owning a home.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools


2nd mortgage definition, drawbacks, and opportunity costs.

Second Mortgage Definition

In case you're not familiar with the term, a second mortgage (otherwise referred to as a Home Equity Loan) is simply a loan taken out against your home after you already have a first mortgage.

What is Second Mortgage?

Basically, a second mortgage allows the borrower to tap into the equity they have accumulated over the course of repaying their first mortgage. Equity is the difference between what you owe on the home and what the home is expected to sell for. So if you currently owe $125,000 on a home that would sell for $150,000, you would have $25,000 in equity.

Of course, the lending institutions view the equity in your home as a potential revenue source. Depending on how much of your home's appraised value they are willing to allow you to borrow (loan to value ratio), lending institutions are usually quite anxious to let you re-borrow a portion of the funds you've worked so hard to pay off.

Most people who take out second mortgages do so because they need access to a large sum of cash, cash for things like home remodeling, debt consolidation, or paying for their child's college education.

Disadvantages of Second Mortgages

The drawbacks to taking out a home equity loan, are as follows.

Increased Risk: If an unexpected event causes your income to drop and you can no longer afford your first mortgage payment, you may end up losing your home -- but still be liable for the 2nd loan. That's because the holder of the first house loan gets paid first when the home is sold in foreclosure, and if the proceeds aren't enough to cover the equity loan, you are left holding the bill -- even though you no longer own the home.

Higher Rates: Since the lender holding the equity loan is more at risk than the primary lender, interest rates for second mortgages are typically higher than rates for first mortgages. Therefore, if you are considering an equity loan, you might be better off refinancing your first mortgage with a "cash-out" option. This would allow you to withdraw the needed cash from your available equity while still paying the lower interest rates.

Living Beyond Your Means: Make no mistake, if you are borrowing money to purchase goods and services, you are living beyond your means. And the more you live beyond your means, the more likely it is that at some time in the future your over-spending will catch up with you -- perhaps causing you to endure a long period of financial hardship.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.