Second Mortgage Refinance [mortgagegoal.blogspot.com]
Q: I took out a mortgage six years ago with Bank of America and have an interest rate of 6.5 percent and a small second mortgage with a rate of 8.5 percent. With rates dropping like they have, I want to refinance but I my loans total probably $ 30000 ... With HARP/ government refinance, you don't have to use your current bank ...
Refinancing may at times work to your advantage. Refinancing a second mortgage might sound a bit strange because you might have heard of refinancing a primary home mortgage but never a second mortgage. However, second mortgage refinance may not be as strange as it sounds because the concept is basically similar to that of refinancing primary mortgages. Refinancing your second mortgage simply means you may be taking on a new loan to pay for your second mortgage at a reduced interest rate or possibly a longer loan term. Just as it is with refinancing first mortgages, you may need to consider if refinancing your second mortgage may be a good financial move for you and it may depend on the amount you owe on your home, the value of your home and whether you plan to stay in your home for a long time.
You may also want to evaluate your reasons for wanting a second mortgage refinance. Refinancing your second mortgage may work in your favor by eliminating private mortgage insurance which can be relatively costly and unnecessary. You may even opt to combine your first and second mortgage into one loan and focus on paying off a single loan only throughout the life of the loan. You may not have to worry about making separate payments for your first and second mortgages anymore should you decide to combine them both. Refinancing your second mortgage may also help you lower your monthly payments by significantly reducing your interest rate. This of course depends on your credit score as the higher your credit score is the lower the interest rate you might have to pay.
Perhaps you find that your current loan term does not match your current financial situation and you wish to remedy that by going for a second mortgage refi. You may also benefit from cash out refinancing if you have built enough equity on your second mortgage and get cash back at closing. However you might want to remember that there is no one-size-fits-all solution to any particular financial situation. So what works for others may not work for you. This is why you may want to base your decisions on your unique individual situation and needs so that when you sign the agreement papers you are confident and satisfied with the choice you made.
Searching for a mortgage provider for your second mortgage refinancing may be basically the same as searching for a mortgage provider for a primary mortgage. You may of course have to determine whether refinancing is the right choice for you. You may still have to check your credit report for errors and immediately report and get any mistakes that you find corrected. Generally your credit report may be important to determine the interest rate that will be imposed upon you. You may also want to list down at least two to three lenders who know how to refinance second mortgage so that you may be better informed about everything that you may need to do every step of the way. Comparing the deals and offers of different mortgage providers may let you find the best deal that fulfills your needs. You might also want to make sure you understand every single term and condition before signing any papers.
You may want to try to negotiate with your lenders to see if they may be willing to waive some fees and you might not want to accept the first loan offer that you receive. You may gain the upper hand if you have excellent credit score and might be able to get the lowest rate possible. Recommend Second Mortgage Refinance Articles
Question by tristenvo2000: I like to know if there is a company will refinance second mortgage after 1 month of purchase.? I would like to know if there is a company who will refinance second mortgage after the house being purchased a month. If they do it will they do the price up the appraisal instead the price of the last month purchased. I like to do stated income and stated asset program. Best answer for I like to know if there is a company will refinance second mortgage after 1 month of purchase.?:
Answer by ErasmusBDragen
that may be hard to find, generally lenders want to see that you've owned the property for at least a year before they will refinance. check with mortgage brokers to see if they have anything for you, banks generally will not
Answer by KENNETH B
i'm in california first time home owner, unseasoned credit and with stated income, i got a refi/cashout(75k)after 3 mos. i did however put over 100k down. we did not need money, we made some renovations. contact a mortgage banker, it will cost you more money but they always seem to work it out! you personally looking for a lender could be quite daunting. they may be able to even get you a better rate. do you know if you have any prepayment penalty riders on that loan? it may not be worth it. at least give it a try. you don't know until you know!
Answer by David K
I'm not trying to beat you up here but just think about what you're asking here. 1. you have been in the house a month and you need money 2. you can't show your income 3. You bought the house a month ago... Ok, now that that is out of the way, you can refinance the existing mortgage itself, but most likely you won't qualify for a 2nd mortgage thats going to make it worth your while to pursue. If you put money down when you did the purchase, you can extend the mortgage to cover the amount that you put down. Secured funding would be a good company to check with for a 2nd mortgage but you aren't going to get above the value of the property, they are going to require some seasoning on it. At least 6 months but most likely a full year. Just put yourself in the investors shoes and ask yourself, "If I had the money, would I want to lend it to me?" This is not based on how good a person you are, it's based solely on the parameters of the three C's... Credit, capacity (can you pay me back) and Collateral (what's the home worth) In this case, I know you are missing two of the C's and if you are missing the Credit portion (Which is likely since you just bought a house) you are out of the game completely. Hope my honesty helps you. Again, I'm not trying to beat you up, just trying to put things in perspective. In my opinion, I would wait it out til you can qualify for a decent refinance.
Answer by Christine
Check your Note for the 2nd mortgage you're trying to refinance carefully. Many 2nds have prepayment penalties!!!! That would make any changes probably not worth it, as they're usually somewhere around 6 months worth of interest in the first year. I would say, if you qualified for the first and 2nd to begin with you could probably qualify again, but I'm assuming your financial information has changed in the month since you purchased and this may not be the case. Did you purchase the house for under appraised value? It would be extremely rare for a house to appreciate in the first month, although some areas of the country are moving up quite fast. I don't know if there is any good answer. The best thing you can do is go back to your original loan agent and ask. It can never hurt and they're always willing to try to make things work and make their commissions!
Answer by Mudisfun
Depending on your credit, any pre-payment penalties and the appraised value of the home there should be a lender available to you. I work with several lenders who will allow cash out with no seasoning and will use a new appriased value. These are A-paper lenders however. If your on a non-prime loan then you may have a couple of hurdles to overcome: some lenders will not allow their 2nd mortgage to become untied to the 1st lien. In this case you would need to refinaince the entire property; you may have a large pre-payment penalty etc... If you would like to discuss your situation drop me a line. Kevin 866-562-6838 x 106 kruorock@firstratelending.com www.firstratelending.com
