When to Refinance a Second Home Mortgage [mortgageapply.blogspot.com]
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If you can handle the same monthly payment (or even a little more), consider reducing the term of the mortgage when you refinance. ... In this scenario, the first mortgage is no higher than $ 417000, and the second mortgage is a home equity line of credit. How you can gain from a mortgage refinance
Knowing when to refinance your second mortgage is extremely important the timing has to be just right, it should have a low interest and low or no fees. Prior to refinancing make sure that it will be in your best interest, you should be able to save money or have lower mortgage payments if you refinance.
Lower Rates Equal Savings
Refinancing can save you hundreds of dollars a month with lower interest rates. Knowing when to refinance is the key to saving the maximum amount of money. To check whether or not you can save money compare your current mortgage to the potential new mortgage plan. Having both your first and second mortgage can also reduce your monthly expenses; however it will work only if your current primary mortgage has a high rate of interest.
Protect against From Rising Rates
Once you have refinanced there is still a possibility of rising interest rates.
By having an adjustable rate second mortgage you can protect yourself from rising interest rates. Even if you have caps in place the length of the loan can be extended and as a result adding to your total on the loan costs. If you refinance a fixed rate will provided peace of mind because your monthly payments won't be more than the month before.When Refinancing Timing is Important
Most often with home equity home loans you would normally pay most of the interest in the beginning of the pay period. This means that by the end of the loan schedule you will be paying very little interest. So refinancing and knowing when to refinance, maybe even early, can bring you savings later.
If moving is a good possibility you would want to hold off on refinancing because of closing cost.
Although the closing cost only equal 1-3% of the total principle it takes a few years to regain your cost. More When to Refinance a Second Home Mortgage TopicsQuestion by NorthCarolinaNow: Can we refinance our second mortgage? We bought a house last year with two mortgages. Because we only put down 10% for the loan, having the second mortgage of 10% of the loan, this way we don't have to pay for the insurance. This second mortgage has an interest rate of 9.75% while our other mortgage is at 6%. We want to refinance this second mortgage to a lower rate. Can we do that? Is there anything that preventing us from refinance just this second mortgage? There is no early payment (repayment) penalty on both of our mortgages. Thank you very much for your help. Best answer for Can we refinance our second mortgage?:
Answer by cheeba0228
most likely you wont be able to just do the second you will have to do the first as well combining them together. You should have done better research though. If you have good credit and a good history of paying on time then you could have been elidgable for programs that have no PMI up to 90%. My company has these if you are interested email me. cheeba0228@yahoo.com
Answer by sara sentor
Oh sure, you have the chance of refinancing your second mortgage. Second mortgage as you know is a secured loan on the property of the borrower. So, if you are in urgent requirement of some cash or want to minimize your monthly payments, second mortgage refinance is a great option for you. Refinancing on second mortgage is very quick and simple. Besides enjoying the lower rate of interest, you get flexibility in repayment as well. Log into:http://www.4refinancemortgage.com/yourmortgagebasics/second_mortgage.html http://www.4refinancemortgage.com/index.html and learn all the basis and insight into mortgage refinancing.
Answer by Tony D
2nd mortgage refinance loans exist, they are just harder to get these days. As a mortgage broker, I am still doing them but the rates are not as competitive as a few years ago - fewer companies buying them and higher risks involved. Let me know what state you are located in and I will refer you to a lender or two that offer these loans. Then you check and decide if it's worth it.
Answer by Erik B
Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $ 1500 towards their rent or mortgage. It's available in most areas, so I think you should check it out. http://www.help-with-your-rent-mortgage.org Hope this helps!
Answer by Maximilian
It depends on the following: 1.How are property prices holding up in your area? 2.How strong is your credit profile now? 3.Are you willing and able to verify your income and/or assets? Something that you need to be wary of are the modifications recently done to the Loan Level Pricing Adjustments made by Fannie Mae and Freedie Mac. Basically these are premiums that lenders are forced to assess onto interest rates depending on how risky a loan is. For instance, the rate of a 95% loan on an investment property will be significantly higher than the rate of an 80% loan on your own home because of the pricing adjustments assessed on rates on investment properties and loans above 80% due to the greater risk they represent to lenders. Even more imperative is the need to make a decision that is inline with your long term financial plans. This means that any new financing you obtain should take into account your children’s 529 college savings plan (if applicable), any major expenses you’re contemplating in the immediate future (a new car, the purchase of a second home, the birth of a child, etc., etc.), your present investment strategy, your insurance needs and obligations or other important financial plans that can be complicated or even derailed if you make the wrong decision about your mortgage financing now. If you’re looking for a comprehensive solution to your financing needs feel free to contact me at RLFunding@AOL.com. We are licensed in all 50 states and specialize in TAX FREE mortgages in the state of New York. Best Regards, J. Polanco Financing Advisor Robbins and Lloyd Mortgage Corp. 347 5th Avenue, Suite 1506 New York, New York 10016 www.RobbinsLloyd.com
