Closed-End Seconds

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Protect Your Clients’ Low First-Mortgage Rates

5th Street Capital’s Closed-End Second Loan Program gives you the competitive edge you need to capture more business, serve more clients, and protect the low rates homeowners worked hard to secure.

Closed-End Second Loan Program
Loan Amounts from $250K - $850K

Grow Your Pipeline. Protect Your Clients’ Low First-Mortgage Rates. Unlock More Volume with 5th Street Capital.

In today’s housing market, millions of homeowners are “locked in” with ultra-low first-lien mortgage rates, making traditional cash-out refinances unattractive or financially impossible. Over the years, cash-out refinance volume has averaged 40% of all refinances. However, homeowners are no longer willing to surrender these low primary mortgage rates to leverage their equity. As a mortgage broker, that means fewer refinance opportunities… unless you offer smarter solutions.

Why Offer a Closed-End Second Mortgage?

A Timely Solution for Today’s Homeowners

The vast majority of U.S. homeowners still have first-lien rates in the 2–4% range. In fact, the average note rate of loans on the books as of 4th quarter 2025, is 4.4% and the average cash-out rates are typically in the mid 6% range for a cash-out refinance. Refinancing into a new first mortgage at today’s higher rates simply doesn’t make financial sense for most borrowers. That’s where a Closed-End Second comes in which can offer a much lower blended rate.

This program allows your clients to:

Preserve their low first-mortgage rate
Tap into home equity for cash—without refinancing
Borrow with predictable, fixed payments
Access funds for debt consolidation, home improvements, investments, and more

As a broker, that translates into a high-demand product that fills a major gap in the market, giving you more chances to say “yes” when others say “no.”

Which Loan Scenarios Can Benefit from our Closed-End Seconds?

We offer loan amounts up to $850K at 75% CLTV, and 90% CLTV on loan amounts up to $500K. Doc types include the following:

Full Doc
Bank Statements
1099
P&L Only
DSCR

The Blended Rate Advantage

Why a Closed-End Second Beats a Cash-Out Refi

Instead of refinancing the entire first mortgage into today’s higher rates, borrowers can simply add a second mortgage at a competitive rate. This creates a blended rate, a combined effective rate that is significantly lower than what they’d have after a full cash-out refinance.

Example Benefits of the Blended Rate Approach:

Lower overall interest expense
Lower total monthly payment
Preserves a historically low first-mortgage rate
Provides needed cash without resetting the entire loan term

For most homeowners, a Closed-End Second is not just the better option, it’s the only option that makes financial sense in today’s market.

Start Offering Closed-End Seconds Today

There is an enormous opportunity that exists in today's market. Join the growing number of brokers delivering smarter solutions to homeowners who want equity without sacrificing their low first-mortgage rate.

Grow your business. Win more clients. Unlock more opportunities with 5th Street Capital.

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