1st And 2nd Mortgage Refinance Loan
Carrie Reeder
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:
View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
The latest information and news on Mortgages:
Mortgage rates hit low of 4.54 percent
Mortgage rates are the most affordable in decades for those who can qualify for a loan.
Mortgage rates hit low of 4.54 pct.
Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans.
Mortgage Rates Fall Again; 30-Year Fixed At 4.54% - Freddie
Mortgage Rates Fall Again; 30-Year Fixed At 4.54% - Freddie
Mortgage brokers to be fingerprinted, registered
Mortgage loan originators will have to be fingerprinted and sign up to a central registry to do business in future, according to new rules issued by the Federal Reserve and other regulators. Mortgage - Business - Mortgage broker - Federal Reserve System - Financial Services
Mortgage rates hit low of 4.54 percent
Mortgage rates are the most affordable in decades for those who can qualify for a loan. For many, the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. But those who have secure jobs, superior... Mortgage - Loan - Refinancing - Unite...
Yahoo! News Search Results for refinance
Russia's Sberbank to refinance RusAl's credit to VEB
Russia's top bank, state-controlled Sberbank, will fully refinance a $4.5 billion loan, which Russia's state development bank Vnesheconombank (VEB) issued to RusAl, the world's largest aluminum producer in the midst of the financial crisis, VEB head Vladimir Dmitriyev said on Wednesday.
Centro to refinance US arm's debt
SHARES in Centro Properties Group rose on news it will refinance and extend the debt of its US business in the midst of restructuring.
Development authority moves to refinance Riverview loan
The Butts County Industrial Development Authority has decided to refinance its loan on the Riverview Business Park property in southern Butts and northern Lamar counties, despite losing its eligibility for a low interest rate.
Pasco School Board to refinance bonds
The Pasco School Board agreed Tuesday to refinance bonds from 2001 and 2003, a move that's expe
7 reasons why you should refinance
A refinance can make sense for many reasons, from getting a lower rate to consolidating debt.