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Mortgage Consumer Refinancing Article
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Refinancing Your Second Mortgage
from: Mortage & Debt FactsHome owners are a select breed, visionaries that enjoy the freedom of owning where they live, and brave enough to deal with the paperwork and financial obligations that comes with such a vision. Mortgages are often seen as something costly, but luckily the option to refinance is available which can save hundreds of dollars each month.
Refinancing has a tendency of going in and out of style based upon interest rates and the lower the rates the better refinancing looks. When you refinance you pay off your old mortgage by taking out a new one. There are several benefits to refinancing but what can that mean if you have a second mortgage?
A second mortgage uses the equity in your home to secure the loan. The first mortgage remains intact which makes a second mortgage completely different then refinancing. Second mortgages must be kept up to date or you risk loosing your house. Now, it is possible to refinance the second mortgage without refinancing your first mortgage. This can be done for several reasons and is usually done with the goal of keeping your house.
The main reason home owners choose to refinance their second mortgage is to take advantage of a change in interest rates. This tends to be the main reason anyone refinances whether it is their first or second mortgage. By refinancing under a better interest rate you will be able to lower your monthly payments on your second mortgage. Changes in your financial situation such as a better credit rating could also mean better rates for your mortgage and so refinancing would be a great route to take. Refinancing your second mortgage can also mean saying good bye to your private mortgage insurance.
Private mortgage insurance can be costly and is used to protect the lender incase the home owner defaults or slips into foreclosure. A high private mortgage insurance or PMI is the result of bad credit, or other instances where the lender is not confident that the home owner will be able to make the scheduled payments.
Refinancing your second mortgage presents the same risks as refinancing a home with only one mortgage. It would be prudent to shop around in order to find the best deal in town so be sure to know your rights when it comes to refinancing and ask whatever questions you may have. Be aware of scam artists and unscrupulous lenders. Read every document handed to you and do not be afraid to negotiate, it is your money after all and if you are refinancing then you could probably use a few extra hundred dollars.
Refinancing your second mortgage may not be right for everyone, so weigh the pros and cons and make decisions based in fact and not the desire for more money.
Mortgage Consumer Refinancing Specific links
Mortgage Consumer Refinancing News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 King of How To News | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) WASHINGTON, DC, May 24, 2012 (MARKETWIRE via COMTEX) -- A proposed bill to streamline and align the refinance processes of Fannie Mae and Freddie Mac may soon make it easier for homeowners who are current on their mortgage payments but who have been ... Freddie Mac: 30-year mortgage rate down a tick at 3.78% Mortgage Refinance in Today's Real Estate Market Thirty-year mortgage rate falls to record 3.78% |
Menendez-Boxer refinance plan will entrench government housing - Daily Caller
Menendez-Boxer refinance plan will entrench government housing Daily Caller By Adam Berkland If you think mega-banks like JP Morgan and Bank of America are “too big to fail,” you may be surprised to hear that the US government is actually by far the most dominant player in our nation's consumer credit markets. |
Real: FHA streamline refinance gets cheaper - The Republic
Real: FHA streamline refinance gets cheaper The Republic The government is about to make refinancing FHA mortgages more affordable -- and potentially easier -- for hundreds of thousands of homeowners. — The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for ... FHA Streamline Refinance Set To Spur Refinance Boom |
Real estate industry pushes Senate on refi bill - MarketWatch
Real estate industry pushes Senate on refi bill MarketWatch The Responsible Homeowner Refinancing Act of 2012, proposed by Senate Democrats Robert Menendez of New Jersey and Barbara Boxer of California would benefit homeowners whose mortgages are owned by the government-supported entities Fannie Mae and Freddie ... HARP 2.0: Good News For Home Owners Who Are Upside Down Don't HARP on it, refinance program too good to pass up Northen Virginia Refinancing Expert Explains New Home Affordable Refinance Program |
Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... - World Property Channel
 Eastern Morning Herald | Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... World Property Channel "Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market. As a result, applications for refinance loans have increased for the third straight week and are at the highest level since ... No Drop in Refinancing Expected Bankrate: Mortgage Rates Hold at Record Lows Mortgage applications up on refi demand: MBA |