1st And 2nd Mortgage Refinance Loan – Refinance And Lower Mortgage Payments
Refinancing both your first and second mortgage will lower your monthly mortgage payment and qualify you for overall lower rates. It will also save you money on closing costs and application fees. And while you are looking at rates and terms, you can reevaluate your loans payment schedule to better fit your budget needs.
Why One Mortgage Is Better Than Two
Lending companies prefer financing one total mortgage rather than two separate loans. So second mortgage rates are at least a point higher than first mortgage rates.
Refinancing your two mortgages into one will qualify your for a lower rate mortgage. Since lenders charge flat application fees, you will save money by going through the process only once. Closing costs can also be cheaper.
In all likelihood, your mortgages have different terms. Refinancing is a good time to reevaluate those terms and decide what would best meet your budget concerns.
If lower payments are your concern, then choose a longer term. While this will increase your total interest costs, it will ease your...