Personal Finance
Tired Of High Second Mortgage Payments? Discover A Smarter Solution
A smarter way to tap your home's value could ease monthly payments and give you more breathing room.
Many homeowners take out a second mortgage to cover expenses like home improvements, tuition or debt consolidation. But the reality is that second mortgages often come with high interest rates, large monthly payments and long repayment schedules that can squeeze your budget.
If you’ve built up equity, Unison’s Equity Sharing Home Loan offers a more flexible alternative — easing monthly payment demands while improving cash flow.
Why Conventional Second Mortgages Fall Short
Taking out a second mortgage can unlock extra funds, but it also means adding another layer of debt on top of your primary mortgage. Compared with smarter alternatives, these loans come with real trade-offs:
- Higher borrowing costs: Second mortgages usually have higher rates than your primary mortgage.
- Tight repayment terms: You’re required to pay both principal and interest every month, leaving little flexibility if your budget changes.
- Less financial breathing room: Managing two mortgages at once can quickly limit your ability to cover other expenses or invest in the future.
That’s where Unison’s Equity Sharing Home Loan sets itself apart. With lower monthly payments and a unique structure that aligns with homeowners’ long-term success, it offers a smarter, more flexible way to put your equity to work.
A Smarter Alternative That Puts Flexibility First
Unison’s Equity Sharing Home Loan isn’t structured like a typical second mortgage. Instead of layering on compounding debt and heavy monthly bills, it’s designed to keep payments manageable and cash flow steady:
- Access up to $400,000 (or 35% of your home’s value, depending on location)
- 10-year term with interest-only payments — lowering your monthly obligation compared to traditional loans
- No prepayment penalties if you want to pay off sooner
- Shared success model — repayment includes the original amount plus a portion of your home’s future appreciation when you sell, refinance, or reach the end of the term
By removing the need for monthly principal payments, the loan frees up more breathing room in your budget — while still allowing you to put your home’s equity to work.
Protecting The Value Of Your Upgrades
One standout feature of Unison’s Equity Sharing Home Loan is the Capital Improvement Adjustment. If you use your loan to fund renovations, this safeguard makes sure you keep the full benefit of the value you’ve added.
Eligible projects include:
- Kitchen or bathroom remodels
- Finished basements or attics
- Energy-efficient upgrades like windows or insulation
After the three years, an independent appraiser determines how much value your documented improvements have added. That increase is excluded from Unison’s shared appreciation calculation — meaning the equity your upgrades created stays with you.
Is This Loan The Right Fit For You?
Unison’s Equity Sharing Home Loan is designed for financially responsible homeowners who want to ease monthly payment pressures without adding heavy debt. To qualify, you’ll typically need:
- At least 30% equity in your home
- A FICO® score of 680 or higher
- A commitment to keeping the property as your primary residence
If that sounds like you, this loan can be a smarter way to access your home’s value. By lowering monthly obligations and protecting the equity you’ve built, it eases financial pressure today while positioning you for tomorrow’s success.
Second mortgages don’t have to weigh you down. With Unison, you can ease monthly pressure and unlock your home’s value more flexibly. Learn more about how Unison’s Equity Sharing Home Loan works.
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.
