For most second loans, the second loan is an adjustable rate HELOC, which sits in second position behind the first loan. Years 1-10 of the HELOC are the “draw period” with a minimum of interest only payments. Years 11-30 are the repayment period where you make fully amortized payments. Rates are tied to prime, with an 18% life cap on the loan. There is an annual maintenance fee and no early termination fee. The payment in our scenarios is reflective of the interest only payment, as the vast majority of clients pay off the HELOC before it reaches the fully amortized stage.