How we get to a verdict

Four inputs from you. The rest is seeded with reasonable defaults you can edit at the bottom of the verdict card. Nothing is guessed at; every number has a formula behind it.

Inputs you give

• Primary home value
• Primary mortgage balance (0 if paid off)
• Combined household gross income
• Target second home price

What we compute first

• Equity in your primary = home value − mortgage balance.
• Down payment target = 20% of the second home price (avoids PMI on a second home).
• Estimated current mortgage payment = standard 30-year amortization back-solved from your balance, assuming roughly 25 years remaining at 5% (editable).

The four strategies, side by side

• HELOC against your primary, capped at 85% combined LTV. Interest-only on whatever portion you draw for the down payment.
• Cash-out refinance at today's 30-year rate. Replaces your existing primary mortgage with a larger one (up to 80% LTV) and gives you the difference in cash.
• Fixed second mortgage (HELOAN). One-shot fixed-rate loan in second position, 15-year amortization.
• Bridge loan against the equity in your primary, interest-only, intended to be paid off when the primary sells.

How we pick "the one"

Each strategy has to clear two tests: it has to fund a 20% down payment (or whatever you set), and the combined back-end debt-to-income has to land at or below 45%. Whichever surviving strategy has the lowest total monthly cost is the one we recommend.

How we pick the verdict

• Walk-up easy. The recommended strategy clears the down payment with at least 50% equity to spare, and the new DTI is more than 10 points under the ceiling.
• Doable. Math works, DTI is at least 5 points under the ceiling.
• Stretch. Math works but DTI is within 5 points of the ceiling.
• Not yet. No strategy clears both tests. We tell you the gap (in equity, income, or both) and how to think about closing it.

What we do not do

• We do not pull your credit.
• We do not store your inputs anywhere; the math runs entirely in your browser.
• We do not connect you to a loan officer. This is information, not a sales funnel.

Get into the assumptions

On the verdict card, click "Edit the assumptions behind these numbers" to change rates, the DTI ceiling, the down payment target, and other assumed costs. The verdict updates live.