1st And 2nd Mortgage Refinance Loan
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.
About the author:
Written by: Carrie Reeder
- 54The lower your interest rate on your refinance mortgage, the more money you will save. But not all refinance loans are created equal. To get the lowest interest rates, follow these three tips when applying for you refinancing. 1. Refinance Your Entire Mortgage Refinancing your entire mortgage will help you…
- 53Contents Research Articles Books Reviews Videos & Audios General Articles Global Warming Updates Tips Articles Wallpapers Activities News & Events About Us Introduction Goals and Objectives Membership Departments Management Credibility Contact Us
- 482 years ago bargain mortgage rate shoppers are on a refinancing spree. While many homeowners seeking to reduce monthly payments and overall rates have secured unbelievably great deals, others have gotten the short end of the stick. Now that rates are rising the question is how can you refinance your…
- 46Bargain mortgage rate shoppers are on a refinancing spree. Many have secured unbelievably great deals. Others have gotten caught up in the frenzy and got the short end of the stick. How can you refinance your home without getting burned? Last week mortgage application reports indicated that homeowners went on…
- 34---<<+>>-----<<+>>-----<<+>>-----<<+>>-----<<+>>-----<<+>> Shopping Tips: 1. If you are over 50 you can save hundreds of dollars off of car insurance and hotel stays by joining AARP (American Association of Retired Persons). Also, adding your children to your car insurance policy can also save you hundreds per year too. 2. If you…
- 32The 19th of September 2009 signified the launch of potentially one of the most significant information Websites for the financial market. A must see tool for anybody interested in expanding there knowledge base regarding home and auto loans, mortgages, credit cards, bad credit, stock market, franchises and business development. The…
- 325 Tips & Tricks for Effective Online Shopping By Pradeep Aggarwal At the dawn of the new millennium, E-Commerce or Online shopping has gained momentum in America and elsewhere with more and more people buying and selling online. According to Forrester Research the numbers are increasing at the rate of…
Share Your Thoughts
Category: Tips Articles