Options to Refinance a Second Mortgage
If you have both a first and second mortgage, or a first mortgage and a HELOC, you have the option to refinance the second mortgage, the first mortgage, or combine both mortgages into a single loan.
Refinance a Second Mortgage Only
The simplest option for refinancing a second mortgage with a high adjustable or fixed rate is to contact your current lender about refinancing to a lower fixed rate loan. If you’re payments have been on-time and you have good credit, your lender may offer you a streamlined loan that requires less paperwork and time and includes fewer costs. If your lender doesn’t agree to a streamlined loan, you should be able to find other lenders who are willing to offer you good terms and a good rate.
Refinance a First and Second Mortgage Together
If you’d prefer the convenience of a single payment and combining both loans into one would save you significant money, you can refinance both loans together. In order to qualify for the best rates, some lenders require you to wait a year after receiving the second mortgage before refinancing it. Your home may also accrue additional equity during this time, which will help ensure that your new loan and settlement costs don’t exceed the value of your home.
You can refinance a first mortgage and either a home equity loan or HELOC into a single new first mortgage. Before you do, compare your potential savings to your costs. If your first and second both have low fixed interest rates and there isn’t a large gap between those rates, refinancing may cost you more than you’d save.
You should also consider how much time you have left on your first loan. If you’re less than ten years away from paying off the first loan, refinancing could actually cost you more because most of your payments are going toward the principal balance rather than interest. Unless you can afford to complete paying both loans in the same time frame as your original loan, this may not be a good option.
Refinance a First Mortgage Only
If you have both first and second mortgages, it is possible to refinance just the first, but it isn’t easy. Your first mortgage is the mortgage listed first with the registrar. When you refinance a first mortgage, any other home loans move up in line, so your second automatically becomes your first. In order to refinance your first as a new first, your second lender must agree to continue subordinating their claim. Some lenders refuse. If your lender refuses, your only options are refinancing both mortgages into one new loan or refinancing both mortgages separately into two new loans.
Before refinancing any mortgage, carefully consider your options. Use refinancing calculators to compare costs and savings from all three options and then make the most financially beneficial decision that your lenders will permit.
For more article on Refinancing Second Mortgage, visit http://www.bills.com/refinance-second-mortgage/
By: justin narin
Refinancing Your Second Mortgage to Gain Capital
If your financial situation is prohibiting you from refinancing your first mortgage, or your first mortgage has a low interest rate, then refinancing your second mortgage will allow you to keep your initial loan intact, while still getting the money you need.
Refinancing a mortgage simply means obtaining a new loan to pay off the first one, so refinancing a second mortgage will allow you to pay off your second mortgage, and still have money left over to:
Consolidate debt Finance small business growth Put money into an investment portfolio Finance vacations, education, or home improvement projects A World of Refinancing Options through Independent Brokers
When you seek the help of private mortgage firms, you will open yourself to a whole range of financing options that would not be available through many traditional lending institutions. Independent firms offer many different kinds of second mortgage refinancing options, including:
High ratio second mortgages Insured mortgages Home equity loans and lines of credit Sub-prime mortgages Private mortgages and mortgages for the self-employed or people who cannot document income Knowing When to Refinance
One of the best times to refinance a second mortgage is when interest rates drop. The easiest way to determine if refinancing is right for you is to discuss your goals, budget, and lifestyle with a qualified mortgage professional, who can analyze your circumstances and help you evaluate if and when to refinance.
Since many second mortgages have penalties for early termination, the expiration of your loan is also a good time to refinance. But if you can refinance your second mortgage and get lower interest rates and better terms, you will save yourself time and money by not waiting until your current mortgage is up for renewal.
With the help of accredited mortgage professionals, you will be able to establish a flexible and affordable repayment schedule that will allow you to:
Lower your rates and save thousands of dollars in interest payments Shorten your amortization period to pay off your principal quicker Lengthen your amortization period—up to 35 years—to decrease monthly payments Increase the amount of your monthly payment that goes to the principal Why Choose Independent Mortgage Firms?
Private brokers, as opposed to traditional lending institutions, have partnerships with numerous lenders, which creates competition for your business. Competition means better rates for homeowners, and more flexible terms for loan repayments.
And many private brokerages also have accredited and qualified mortgage professionals available for free consultations, so that you can get off on the right foot to refinance your second mortgage, and start saving for your goals.
By: James Barry
FHA mortgage Refinancing, FHA mortgage loans, FHA Home loans
The FHA home loan offers exclusive Florida FHA mortgage refinancing, FHA mortgage rates, FHA refinance loans, FHA fixed mortgage refinance, FHA low equity loans, FHA refinance mortgages, FHA bad credit mortgage, second mortgages, FHA home equity loan modification options and 100% FHA mortgage rates for debt consolidation, fixed loan refinance, cash out and new home financing. FHA Mortgage rates have dropped to 4.5% for FHA fixed rate refinancing loans! Our Florida FHA Lenders report that FHA mortgage refinancing with loans remain the hottest mortgage loan products with conforming and FHA mortgage lenders can offer 103% and 110% FHA refinance loans through the government backed FHA Mortgage program, DU Refinance. Standard FHA home loan refinance with cash options limit FHA Mortgage applicants to 95% LTV and rate and term streamline refinance loans are capped at 97%.
Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:
Minimal Down Payment and Closing costs.
Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.
To take advantage of the FHA program in Florida, visit
http://www.fhamortgagefhaloan.com/
Our FHA mortgage lenders maintain headquarters in Florida, but we have extended our FHA mortgages and home loans purchase and FHA mortgage refinance services to consumers nationally. Florida Homeowners can take advantage of discount FHA mortgage refinance rates for equity loans. Most Florida FHA mortgage applicants want to FHA refinance and consolidate high interest credit card debt or refinance their variable home equity lines of credit into a tax deductible fixed rate mortgage loan. Whether you need to a FHA home loan for an FHA purchase a new FHA home refinance your mortgage or negotiate a FHA mortgage loan.
As an experienced FHA mortgage banker, Nationwide FHA Mortgage Loans assembled a talented FHA Mortgage refinance team that provides “outside of the box” first and second mortgage loans. FHA mortgage applicant can improve their financial state when FHA Mortgage refinancing their high interest revolving debts and consolidating their all higher interest loans together into a reduced FHA mortgage payment loan ensured by a low fixed interest rate. First time Florida homebuyers are encouraged to our competitive FHA loan products like the 97% FHA refinance mortgage loans, “interest only” home equity credit lines and 100% FHA home mortgages. If you have a variable rate home equity credit line, we recommend an FHA Mortgage refinance. If you are seeking to FHA refinance your variable rate loans or currently have a bad credit mortgage but your credit scores are low or no equity left in your Florida home, we encourage you to apply online because our FHA mortgage guidelines make exceptions for compensating factors. According out account executives an FHA Home loan is easier than ever before to get approved for, Florida homeowners should seek the expert FHA refinancing advice from the ‘FHA Mortgage Loan Originators’.” Get the best FHA mortgage refinance rate possible with our volume discounts for home equity, 2nd mortgage or FHA mortgage loans.
By: Florida Mortgage