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Can You Refinance Second Mortgages?

can-you-refinance-second-mortgages

ANSWER:

Refinancing a second mortgage depends on the terms of loan. It is possible if the lender allows it.

More Info:When you borrow a second mortgage, there are several different types of loan programs available to you. Depending on the type of loan that you borrow, the rules about refinancing will differ. Also, it depends on the lender of your second mortgage. When a homeowner borrows a second mortgage, the purpose is generally to have extra cash on hand to complete a remodeling project or to help finance the home purchase.

When should you Refinance?

If you have the option to refinance a second mortgage, then timing is important when it comes to making the decision of when to refinance. Watch interest rates. This is the first thing you should do as a borrower. If interest rates are lower than the rate of your current loan, then it might be a good time to refinance.

Are There Other Costs to Consider?

There are fees and other costs associated with refinancing a second mortgage. If you want to refinance, do your research and find out which lenders are offering competitive rates. Lenders are looking for your business and finding multiple loan programs should not be very difficult for an advantageous borrower.

What About Home Equity Loans?

A home equity loan is an excellent choice for refinancing a loan. This type of program allows you to use the equity that you have built in your home to get more competitive loan terms and lower fees. You also have the option to take cash out when you borrow this type of loan in the event that you are in need of cash on hand for any reason.

Is it Wise to Refinance Everything?

Refinancing your first and second mortgages together into one new loan might be a good idea for borrowers who have an adjustable rate mortgage as their first mortgage or even their second. Because the result of an ARM is generally higher payments later in the loan or as interest rates change, many homeowners would financially benefit from refinancing.

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