How To Reduce Your Second Mortgage Payment

If you’re carrying a second mortgage, you’re not alone — and you may be feeling the pinch of high monthly payments. For many homeowners, second mortgages were a way to cover renovations, tuition or other major expenses. But the downside is often steep monthly obligations that strain household budgets.

That’s where Unison’s Equity Sharing Home Loan comes in. It’s designed to help homeowners lower their second mortgage payments — often by as much as 50 to 70% compared to traditional options — while giving you more financial breathing room.

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Why Traditional Options Fall Short

Typical second mortgages, home equity loans or cash-out refinances all come with trade-offs:

• Cash-out refinance: You’ll reset your mortgage, extend your repayment timeline, and face new closing costs.
• Home equity loan: Offers predictability with fixed payments, but adds another loan with a large monthly bill.
• HELOC: Provides flexibility, but variable interest rates can make budgeting unpredictable.

These options can work, but they also mean taking on more debt or higher monthly costs at a time when many households need relief.

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A Smarter Way To Ease Monthly Payments

Unison’s Equity Sharing Home Loan isn’t your ordinary second mortgage. It’s a 10-year, interest-only loan structured to keep payments low:

• You pay up to 75% of the interest due each month, while the remaining 25% is deferred until the end of the loan term.
• At the end of 10 years — or sooner if you sell, refinance, or choose to pay it off — you repay the original loan amount, any deferred interest and Unison’s fixed share of your home’s appreciation.
• Example: If you borrow 10% of your home’s value, you’ll typically share 15% of its future appreciation.

This setup lets you unlock your home’s equity while keeping monthly payments manageable — without resetting your mortgage or piling on traditional debt.

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Renovating? Keep More Of What You Build

Another unique feature is Unison's Capital Improvement Adjustment. If you use your loan for renovations, upgrades that add value — like a remodeled kitchen, new roof, or energy-efficient windows — are credited back to you.

Here’s how it works:

• After three years, if you’ve hired licensed contractors and documented the work, an independent appraiser will determine how much value those improvements added.
• That amount is excluded from Unison’s shared appreciation calculation, meaning you keep the full benefit of the equity created by your upgrades.

This ensures you don’t lose out on the value of the improvements you’ve invested in your home.

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Is It Right For You?

Unison’s Equity Sharing Home Loan may be a good fit if you:

• Currently carry a second mortgage and want to cut payments by up to 70%
• Need financial breathing room without refinancing your first mortgage
• Plan to renovate your home and want credit for the equity you create
• Prefer lower monthly payments over taking on traditional debt

Lowering your second mortgage payment doesn’t have to mean more stress or debt. With Unison’s Equity Sharing Home Loan, you can ease monthly pressure, keep more of your home’s value, and take a smarter approach to using your equity.

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Second mortgages don’t have to weigh you down. Learn how Unison’s Equity Sharing Home Loan can cut your payments and unlock your home’s value today.

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Disclaimer: This article is sponsored by Unison and provides general consumer information only. It is not financial, legal, or investment advice. Consult a qualified professional before making decisions about home equity products. Borrowing against home equity involves risks, including increased debt, potential loss of equity if property values decline, and foreclosure if payments are not made. Unison’s Equity Sharing Home Loan requires a minimum FICO score of 680, at least 30% home equity, and other eligibility criteria; repayment includes the original amount, deferred interest, and a share of future home appreciation. Terms and availability vary by location. Contact Unison for details. This article contains links to third-party websites, which we do not endorse or control. Access these links at your own risk. Statements about home value appreciation are forward-looking and based on assumptions; actual results may vary.