Title:
1st And 2nd
Mortgage Refinance Loan
Word Count:
348
Summary:
Refinancing a
first and second mortgage requires some extra considerations. Depending on your
equity, you may find that combining the two mortgages results in a higher
interest rate. You may also find that you have to carry PMI with the refinanced
mortgage.
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one
payment, often lowering your monthly bill. You may also find lower rates under
the right circumstances.
Those w...
Keywords:
mortgage,
refinance, 2nd mortgage
Article Body:
Refinancing a
first and second mortgage requires some extra considerations. Depending on your
equity, you may find that combining the two mortgages results in a higher
interest rate. You may also find that you have to carry PMI with the refinanced
mortgage.
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one
payment, often lowering your monthly bill. You may also find lower rates under
the right circumstances.
Those with a large amount of equity benefit most from consolidating loans since
they qualify for the lowest rates. It is important to look at interest savings,
not just monthly numbers which can be misleading.
However, if you have less than 25% equity, you may end up qualifying for higher
rates. With less than 20% equity, you will also have to pay for private
mortgage insurance. Even with these factors, you may still find that you will
save money by refinancing.
Have You Done Your Research?
To see if refinancing makes sense for you, research mortgage lenders. You can
quickly go online and request quotes and terms. Look at the different offers,
and work out the numbers. An online mortgage calculator can help you figure out
monthly payments and interest costs.
An easy way to compare cost is to first add up your interest payments for both
mortgages. Use this number to compare interest payments with each potential
mortgage.
You also need to factor in the cost of refinancing. Just like with your
original mortgage, you will have to pay fees and points. You want to be sure
that you can recoup these costs with your interest savings.
Why Do You Want To Refinance Both Mortgages?
While refinancing both mortgages is convenient, you may decide to refinance
only one or both separately. With your main mortgage, you can expect to get low
rates.
A second mortgage will usually qualify for higher rates, but you can lock them
in. You may also choose to convert from a line of credit to an actual mortgage.
Again, you will want to investigate financial packages before signing up with a
lender.