Unless you’re paying cash for a second home purchase, you’re going to have a second mortgage payment. However, borrowers who have enough equity in their first home can leverage that value to finance a second home. Some homebuyers use a cash-out refinance to access home equity by replacing their current mortgage loan with a larger one, and then using the lump sum of leftover cash as a down payment for a second home mortgage. But for homebuyers who have recently refinanced or simply do not want to pay closing costs, a home equity loan or home equity line of credit (HELOC) could get second homebuyers access to up to 80% of the equity in their home.