Refinance Second Mortgage

Most People Don’t Know That You Are Able To Do A Refinance Second Mortgage To Save Money On Their Loans

Many people end up with a first and second mortgage and lots of these people do not know that you can do a refinance second mortgage. With a refinance second mortgage you usually have two options. First option of a refinance second mortgage is to just refinance that mortgage by its self. The second option of a refinance second mortgage is to refinance your first and second together. This will usually give you the best pricing.

The reason that most people have a first and second mortgage is because of the conforming mortgage laws. In most circumstances the conforming mortgage amount is $417,000. A conforming mortgage means that this is not a large amount that they are lending you and it is a lower amount of risk. This means that you will receive a better rate on this mortgage and will not have to go through as many hoops to get it approved. Any mortgage that is over $417,000 is considered a jumbo mortgage. On a jumbo mortgage there are more restrictions and guidelines that you need to go through to get approved. Also you will receive a higher rate.

The way around getting this higher pricing for a jumbo loan is to do a first and second mortgage. Many lenders will set up a first loan for $417,000 and a second to cover the remaining balance of the loan. For many homeowners when they go to refinance they just think about their first loan because it is the largest payment that they make every month. Many of these people do not know that they are able to refinance second mortgage. Usually a refinance second mortgage is a much better option because the loan amount is smaller so the terms are way less competitive. To save closing costs it is usually beneficial for many people to not just refinance second mortgage but to just roll both mortgages into one and refinance them together at one time. This process is much smoother and with refinance mortgage interest rate so low it is a lot more convenient for the homeowner.

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