Can I Refinance To Get My First And Second Mortgage Combined?
The inconvenience of having two mortgage payments has led many homeowners looking to refinance both 1st and 2nd mortgages into just one payment.
Advantages of refinancing a 1st and 2nd mortgage combined
Refinancing two mortgages consolidates both loans into just one with one payment many times lowers your total bill each month but also by combining both loans does relieve stress, save money and make a lot of financial sense. If the circumstances are right at the time of refinancing, interest rates may be lowered and also those lower rates could save hundreds each month on a mortgage payment. If you plan to stay in your home for a long time and one of your loans has an adjustable rate, it may be a very good choice to refinance.
Disadvantages of refinancing a 1st and 2nd mortgage combined
Certainly, just the inconvenience of having to pay two different mortgages is the biggest reason why homeowners are looking to refinance them both. Refinancing entails the very same procedures that the original mortgage did; therefore, you will need to pay closing costs as well as fees once again. But before making such a big decision, this needs to be an option only if you plan on living in your home for a long time. Your credit score is a determining factor with refinancing so if your credit score has gone down in the past few years, lenders may not approve your loan with a low refinancing rate. You will need to be prepared to pay a slighter higher rate.
Consider all options
By deciding to refinance two mortgages into one, carefully weigh all your options before deciding to Compare both the advantages and disadvantages. Compare rates and offers that are provided by several different lending companies before you make a final decision.