1st and 2nd Mortgage Refinance Loans – Why Refinance Both?

2nd mortgage loan

Many homeowners are considering refinancing their 1st and 2nd mortgage to one loan because they don’t want to make two monthly payments. Combining both mortgages into one mortgage can be convenient and save money. However, homeowners need to weigh the benefits and risks before refinancing their mortgages.

Combining 1st and 2nd Mortgages has its benefits

Consolidating your mortgages will result in one monthly payment and a reduction in your monthly mortgage payments. You are most likely paying an interest rate at least two points higher than current market rates if you have a 1st or 2nd mortgage. Refinancing is a great option if you are in this situation. Refinancing both mortgages at a low-interest rate can help you save hundreds of dollars on your monthly mortgage payments.

2nd mortgage

1st and 2nd mortgages at the same fixed rate could be a good option if you have accepted an adjustable-rate mortgage. These rates can change even if they are currently low. Your adjustable rate mortgages can rise as market trends change. Your mortgage payments will rise significantly if you have higher mortgage rates. Fixed-rate mortgage financing will keep your mortgage payments predictable.

Disadvantages when refinancing a 1st or 2nd mortgage

It is important to weigh the benefits and drawbacks of refinancing both your mortgages before you make a decision to combine them. Refinancing a mortgage is the same process as the original mortgage application. You will be required to pay the closing costs and fees. Refinancing is the best option for people who intend to stay in their homes for a long period of time.

2nd mortgage loan

Lenders may refuse to approve you for low-rate refinancing if your credit score has declined significantly in recent years. Refinancing both mortgages and consolidating them will result in a higher interest rate. Compare the savings before you accept an offer.

Refinancing two mortgages could result in you having to pay private mortgage insurance (PMI). PMI is required for home loans that have less than 20% equity. Private mortgage insurance is not required for home loans with less than 20% equity. Instead of consolidating them all, homeowners might consider refinancing each mortgage separately.

Read Also

5 Steps to Reduce Your Auto Insurance Rate

249 Comments on “1st and 2nd Mortgage Refinance Loans – Why Refinance Both?”

  1. First of all I would like to say fantastic blog! I had a quick question which
    I’d like to ask if you don’t mind. I was curious to know how you
    center yourself and clear your head prior to writing.

    I’ve had trouble clearing my mind in getting my
    thoughts out there. I do take pleasure in writing however it
    just seems like the first 10 to 15 minutes tend to be lost just trying to figure out how
    to begin. Any suggestions or hints? Appreciate it!

  2. Greetings! Quick question that’s totally off
    topic. Do you know how to make your site mobile
    friendly? My site looks weird when browsing from
    my iphone. I’m trying to find a theme or plugin that might
    be able to correct this problem. If you have any
    recommendations, please share. With thanks!

  3. Today, I went to the beach front with my kids. I
    found a sea shell and gave it to my 4 year old daughter and
    said “You can hear the ocean if you put this to your ear.” She placed the
    shell to her ear and screamed. There was
    a hermit crab inside and it pinched her ear. She never wants
    to go back! LoL I know this is entirely off topic but
    I had to tell someone!

  4. Thanks , I’ve recently been searching for info about this topic for a while and yours is the best I have
    came upon till now. But, what in regards to the bottom line?
    Are you sure about the source?

  5. We’re a gaggle of volunteers and starting a brand new scheme
    in our community. Your web site offered us with valuable information to work on. You have
    performed a formidable task and our entire community can be thankful to you.

  6. Spot on with this write-up, I truly think this amazing site needs much
    more attention. I’ll probably be back again to read through more, thanks
    for the info!

  7. What’s Taking place i am new to this, I stumbled upon this I’ve
    discovered It absolutely useful and it has aided me out
    loads. I’m hoping to give a contribution & assist
    different users like its aided me. Good job.

  8. Fantastic goods from you, man. I have understand your stuff
    previous to and you’re just extremely fantastic.
    I really like what you have acquired here, really like
    what you are saying and the way in which you say it.
    You make it enjoyable and you still take care of to keep it wise.
    I can’t wait to read far more from you. This is actually a great web site.

  9. I don’t even know the way I ended up here, but I thought this put up was great.
    I don’t understand who you might be however certainly you’re going to a
    famous blogger in the event you aren’t already. Cheers!

  10. Hey just wanted to give you a quick heads up.

    The text in your article seem to be running off the screen in Ie.
    I’m not sure if this is a format issue or something to do with
    browser compatibility but I figured I’d post to
    let you know. The style and design look great though!
    Hope you get the problem resolved soon. Kudos

  11. Nice weblog right here! Additionally your site so much
    up fast! What web host are you the use of?

    Can I am getting your affiliate link on your host?
    I wish my web site loaded up as fast as yours lol

  12. This is really attention-grabbing, You are a
    very professional blogger. I’ve joined your feed and stay up for seeking extra of your wonderful post.
    Additionally, I have shared your site in my social networks

  13. I’m not sure exactly why but this weblog is loading very slow
    for me. Is anyone else having this problem or is it a
    issue on my end? I’ll check back later on and see if the problem
    still exists.

  14. Greate pieces. Keep writing such kind of information on your
    blog. Im really impressed by your blog.
    Hey there, You’ve done a fantastic job. I will certainly digg
    it and individually recommend to my friends. I’m confident they
    will be benefited from this website.

  15. I’m no longer sure where you are getting your info,
    but good topic. I must spend some time studying much more
    or working out more. Thanks for wonderful info I used to be on the lookout for
    this information for my mission.

  16. F*ckin’ remarkable things here. I am very satisfied to see your article. Thanks so much and i am taking a look forward to touch you. Will you kindly drop me a e-mail?

  17. Go 1here to get some free gems cooking fever

    The game is a whole lot more fun when you have as many diamonds as you could ever want.If you enjoy phone games like this you should check out this website

  18. Hi there, i read your blog from time to time and i own a similar one and i was just wondering if
    you get a lot of spam comments? If so how do you protect against it, any plugin or anything you can suggest?
    I get so much lately it’s driving me insane so any help is very much appreciated.

  19. I will right away seize your rss as I can not to find your email subscription link or newsletter
    service. Do you’ve any? Please let me realize in order that
    I could subscribe. Thanks.

  20. It is appropriate time to make a few plans for the
    future and it is time to be happy. I’ve learn this put up and if I may I
    want to suggest you some interesting things or tips.
    Maybe you could write subsequent articles relating to this
    article. I wish to learn more issues approximately it!

  21. It is perfect time to make some plans for the future and it is time to
    be happy. I have read this post and if I could I desire to suggest you some interesting things or advice.
    Maybe you could write next articles referring to this article.

    I want to read even more things about it!

  22. I precisely needed to say thanks once more. I’m not certain the things that I could possibly have created in the absence of the type of pointers shown by you on such a area of interest. It has been a real troublesome concern in my view, nevertheless discovering the very skilled style you processed the issue made me to weep over joy. I am just thankful for this advice and expect you find out what an amazing job you are providing teaching people through your webpage. I am sure you’ve never come across any of us.

Leave a Reply

Your email address will not be published.