Is A Second Mortgage A Backup Plan ? Or A Financial Burden In Disguise?

When an emergency hits or savings start to shrink, many homeowners see a second mortgage as a safety net. It?s familiar, fast and often viewed as the smart fallback plan. But there?s a reality that?s easy to overlook ? a second lien also comes with another required monthly payment ? often fixed with a second mortgage, or variable if it?s a HELOC.

So before leaning on a second mortgage or HELOC, it?s worth asking: is it really protecting your future, or quietly adding pressure to it?

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The Problem With Traditional Second Mortgages

A second mortgage does unlock equity, but it also locks you into:

• A new monthly payment that starts right away
• A long repayment term ? often 10 to 30 years
• Interest that adds up over time
• Less room in your budget when you need flexibility most

You get the cash, but often at the expense of financial breathing room.

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Why Homeowners Are Rethinking the ?Plan B?

Costs of healthcare, college tuition and everyday essentials continue to climb, while savings don?t always keep pace. More homeowners are questioning whether taking on more debt ? even with good intentions ? is the best path forward. A safety plan shouldn?t make it harder to handle life?s curveballs.

That?s why options that offer access to equity without heavy monthly payments are gaining attention.

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A Different Approach: Unison?s Equity Sharing Home Loan

Unison's Equity Sharing Home Loan gives homeowners access to a portion of their equity with significantly lower monthly payments than a traditional second mortgage or HELOC.

Here?s how it works:

• It?s a 10-year, fixed-rate interest-only loan and you receive a lump sum of cash upfront.
• Monthly payments are lower because Unison shares in a portion of your home?s future value. When the loan ends ? or sooner if you sell, refinance, or pay it off ? you repay the original loan amount and Unison?s fixed share of your home?s appreciation.
• You stay on the title, keep ownership and continue making decisions about your home.

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Built to Protect Homeowners ? Not Add Pressure

Homeowners often worry equity-sharing means giving up control. With Unison, that isn?t the case. You still own your home ? Unison is simply investing alongside you.

And if you renovate or add value to your home along the way, Unison?s Capital Improvement Adjustment program ensures you receive credit for eligible, documented upgrades when the agreement ends. Whether it?s a kitchen remodel, new roof or addition, the value you create stays with you.

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Smart Ways Homeowners Use This Option ? And Why It Works Long-Term

Homeowners typically use Unison?s funds to:

• Cover medical bills or emergency costs without draining savings
• Pay off high-interest debt to lower monthly expenses
• Make home improvements ? with value protected through the CIA program
• Set aside emergency funds or prepare for the future while preserving monthly cash flow

Because payments are lower than a second mortgage, homeowners maintain more financial flexibility ? especially when life feels uncertain.

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Ready to explore your options? Get a personalized estimate from Unison and see how much flexibility you could gain.

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Sponsored by Unison. This is promotional content and not financial advice. Consult a qualified professional for personalized guidance. Risks include sharing a portion of your home?s future appreciation (typically 20-40%, depending on terms), potential fees, eligibility requirements, and market fluctuations that could affect repayment or net proceeds. Full terms and conditions apply; visit unison.com/terms for details.