If you have a low-rate first mortgage, a second-lien loan usually beats a cash-out refinance: you keep the cheap first in place and borrow only against the remaining equity, instead of repricing the entire balance.
A cash-out refinance replaces your whole first mortgage — including the low rate you may have locked years ago — to reach the equity. For a defined, short-term need, that's an expensive way to access capital.
A second lien leaves the first untouched and sits behind it, sized to the combined loan-to-value we're comfortable with on the asset. You pay for the slice you actually borrow.
The trade-off is exposure and term: second-lien capital is short-term and priced to the position. We lend in first or second position against commercial or residential real estate.
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Related: Second-lien loans · Lending in Colorado