Refinancing with Multiple Mortgages
For some, having two mortgages is a reality they just have to deal with. Whether it was to do home repairs, pay hospital bills, or send your child to college, the result is the same. You have two mortgages and a lot of interest to pay. As time goes on you may be ready to roll those two mortgages back into one. While most occurrences of rolling a first mortgage and home equity line or second mortgage back together will lower your interest, it may not actually save you money. The reason is because the term on your new mortgage will be reset. This could mean setting back your homeownership timeline by many years and could also mean an increase in total interest paid.
Homeownership Goals Matter
The problem is that many lenders will focus on the lower monthly payments, knowing that in the long run, you will pay more. Of course, you may not be as worried about your homeownership timeline as you are with saving some cash monthly. Those who find themselves in this situation will have to make a hard choice now and should hope to refinance again in the future.
An Important Tip
Always get a quote from a loan servicer for the first mortgage loan amount only, not both. Then get a quote for the amount of the second loan. Remember that when applying for a refinance quote on a second mortgage, you will need to cite the balance of the first.
Similar Posts:
- The Truth about No-Cost Refinancing
- Projections for Underwater Mortgage Holders
- Behind in Your Mortgage Payments?
- Looking for a No-Cost Refinance? Find Out What “No-Cost” Really Means
- Mortgage Rates Spike. Is Your Rate Locked In?
