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How to Refinance having a Second Mortgage

The choice to refinance a second mortgage should never be taken lightly. Yes, of course its just one way of acquiring extra cash it means acquiring a fresh loan. You need to make sure that your 2nd mortgage would not simply come with surplus money but better loan rates and terms too.

Why You Should Refinance using a Second Mortgage
Not every situation would guarantee refinancing and not each financial need could be solved with a second mortgage. You need to think about every factor and price involved in the process before making your decision. Listed below are some excellent reasons that could merit refinancing using a second mortgage.

Forget about Private Mortgage Insurance
Personal mortgage insurance could have been assessed on your first or perhaps existing mortgage however, if you refinance with a second mortgage, you can avoid paying for May. Unknown to many, private mortgage insurance is quite a pricey expense. You may not discover it because it would be able to be included in your monthly payments, but PMI can cost you thousands of dollars every year. Thats money squandered and not well-spent!

Consolidate Just about all Mortgages in One Loan
Simply by refinancing with a next mortgage, you can merge your existing mortgage loan and maybe even other debts into one particular loan. Of course, this would simply be beneficial if your next mortgage comes with much better rates and phrases. Shop wisely!

Better Rates and Conditions
Had times recently been especially tough whenever you acquired your first mortgage? That could be the reason why your current interest rate is unusually high? But todays market is different and there may be a low interest rate rate mortgages now you can take advantage of. With low interest, youll be able to ensure reduce monthly payments as well.

Think about the terms of your existing mortgage? Are you content with it? If not, you are able to refinance using a second mortgage with terms that match your current financial needs. In case your first mortgages due to run out this year but you havent yet enough money for the mechanism payment, you can remortgage with a second mortgage loan to settle the last transaction and rest easy having a longer loan term.

Cash Out, Cash Back
Last although not the least, refinancing using a second mortgage will give you extra cash. The amount of extra cash available may of course depend on simply how much youll borrow and the sum you have to pay to settle the existing mortgage.

But thats not the end from it. If, for instance, you determine to sell your home, you should use part of the proceeds to be in your second mortgage. Should you be lucky to get the best remortgage mortgage rates then youll most likely have extra cash once again after closing the loan.

How to Refinance having a Second Mortgage
If youre convinced about the rightness associated with refinancing then heres what you should do to refinance with a second mortgage.

Step 1 Improve or repair credit rating.
Its the only way to make you qualified to receive the best mortgage remortgage rates. You can do this alone or you can acquire the services of a credit repair business.

Step 2 Shop for rates.
Know which companies offer the lowest charges and what their particular requirements are in return. Know the costs concerned and which of them could be waived in your favor.

Step 3 Use.
Make sure you read the conditions and terms of your second home loan before signing up for anything!

  • Randell says:

    has anybody ever used the 203k from HUD. it appears as though a great program to purchase and connect up qualities then sell without having much cash. has anybody used this?



    March 7, 2013 at 12:17 am
  • Phillip says:

    First mortgage=$405K. Second Mortgage $120K. One lender, both refinanced. Second mortgage foreclosed and sold property at trustee sale June 2009 for $120K to “REO…”. Left property December 2009. BK Ch 7 discharged 8/10. Now found out that first mortgage sold property again at another trustee sale held September 2011 for $470K to “Bank of …”.

    I’m very confused. So many questions:

    1. When the 2nd foreclosed, it owned the property with the 1st still attached. In order to get title, it should’ve bought out the first so 1st doesn’t foreclose?
    2. Can the 1st foreclose, more than 2 years after the 2nd completed their trustee sale?
    3. This second foreclosure has been reported on my credit report. So now, I have a foreclosure in 2009 (2nd) and now 2011 (1st) for the same property. Can they do that?
    4. How many foreclosures can there be by one lender on one property on one set of loans of one borrower?

    Thanks for any input. Any one in this situation?
    To this kid…you obviously did not read the entire post and misunderstood the questions.

    From doing some research, I found out that when the first forecloses, any junior liens gets wiped out, it does not get bought out like you misunderstood.

    In my situation, the second mortgage foreclosed NOT the first. I’m trying to get an answer on what was supposed to have happened to the first when it was the second that foreclosed and sold the property in a trustee sale. My understanding was that the second should have paid off the 1st first before taking money left over (which was $0) for themselves.

    And are you saying that lenders can foreclose as many times as they want on one property, on one loan as many times as they can? That was a smart *ss answer that does not make sense at all.

    April 9, 2013 at 11:23 pm