Can you refinance a second mortgage?
Homeowners when they apply for their first mortgage rarely do so with the intention of getting a second mortgage down the road. And if they apply for a second mortgage, it likely doesn’t cross their mind that someday they might want to refinance. But there are several reasons why a homeowner might wish to get a second mortgage and there are several reasons why they might want to eventually refinance their second mortgage.
If you are considering refinancing your second mortgage, there are a few things you should remember:
- Before you decide to refinance a second mortgage, you will need to decide if it is in your best interest to do so. While refinancing can help you to consolidate debt or access more cash from your home equity, you need to be sure that you will be able to afford the new payments. Otherwise you are putting your home at risk.
- Consider your credit. If your credit is poor, you likely won’t be able to get the best rate when you refinance. If possible, try to work on improving your credit before you refinance a second mortgage.
- Negotiate with your current second mortgage lender. Before you take your business elsewhere, it never hurts to ask your current lender if they would be willing to refinance your mortgage at a lower interest rate.
- Compare rates of other lenders. Before you refinance with your current lender, do a little rate comparing with other lenders. This is one area where working with a mortgage broker can save you a lot of time and hassle!
- Read through all the paperwork. Before you refinance your second mortgage you should make sure that you understand all the terms and conditions. If there is something you don’t understand, ask questions. Your mortgage broker will be able to explain anything that you don’t understand.
Refinancing a second mortgage can be done but it is advisable that you do so with the help of a mortgage broker. This strategy can be used to help you lower your mortgage payment or to get some cash from the equity in your home.
Do you have a second mortgage that you would like to refinance? If so, contact Matrix Mortgage Global today. A member of our team would be happy to help.