When the bank says no, homeowners often ask the same question: What’s the difference between a private mortgage, a second mortgage, and a refinance — and which one is right for me?
Each option helps you access funds, but they work very differently. At Sunlite Mortgage, we make these choices clear, so you can move forward with confidence.
A private mortgage is short-term financing from private lenders (individuals or companies) instead of banks. They’re designed for borrowers who:
A second mortgage is an additional loan secured against your property — without breaking your first mortgage. It’s ideal for homeowners who want to:
A refinance replaces your existing mortgage with a new one, often at better terms. It’s best suited for borrowers who:
| Feature | Private Mortgage | Second Mortgage | Refinance |
|---|---|---|---|
| Purpose | For borrowers who can’t qualify at the banks or need urgent funding. | Access equity without breaking your first mortgage. | Replace your existing mortgage with a new one. |
| Rates | 6–9% (first) / 10–15%+ (second/private). | 10–15%+. | Closer to bank rates. |
| Costs | Lender + broker fees, legal, appraisal. | Same fees, short-term structure. | Legal + appraisal, possible penalties. |
| Term Length | 1–3 years. | 1–3 years. | 1–5 years. |
| Speed | Very fast — 3–5 days. | Fast — 3–5 days. | Slower — several weeks. |
| Best For | Urgent closings, bad credit, unique deals. | Debt consolidation, proposals, arrears, and renovations. | Long-term stability and lower costs. |
| Exit Strategy | Refinance later. | Refinance later. | Already long-term. |
