Bad Credit Refinance Loans - Finding a Good Lender Finding a good lender to help you with refinancing your home loan can be tricky if you have bad credit. There are plenty of predatory lenders out there who would like to take advantage of you with excessively high interest rates and fees. The key to ... Importing Goods From China? Learn How to Finance your Import/Export Company Importers are growing by leaps and bounds. Learn and easy and innovative way to finance your import/export business. It is no secret that many small importing companies have become big importing companies by capitalizing on the opportunity to ... Unlimited Sales? Learn if Purchase Order Financing Can Help Finance your Sales Are you selling tons of product but need money to pay suppliers? Consider purchase order financing. Do you distribute, re-sell or sell wholesale products? If you do, you will soon encounter what may be your biggest opportunity for success. or ...
1st And 2nd Mortgage Refinance Loan
Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances.
Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.
However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still find that you will save money by refinancing.
Have You Done Your Research?
To see if refinancing makes sense for you, research mortgage lenders. You can quickly go online and request quotes and terms. Look at the different offers, and work out the numbers. An online mortgage calculator can help you figure out monthly payments and interest costs.
An easy way to compare cost is to first add up your interest payments for both mortgages. Use this number to compare interest payments with each potential mortgage.
You also need to factor in the cost of refinancing. Just like with your original mortgage, you will have to pay fees and points. You want to be sure that you can recoup these costs with your interest savings.
Why Do You Want To Refinance Both Mortgages?
While refinancing both mortgages is convenient, you may decide to refinance only one or both separately. With your main mortgage, you can expect to get low rates.
A second mortgage will usually qualify for higher rates, but you can lock them in. You may also choose to convert from a line of credit to an actual mortgage. Again, you will want to investigate financial packages before signing up with a lender.
About the author:
View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Finance News
Markell names finance secretary-designate and OMB chief - Dover Post Governor-elect Jack Markell unveiled his nominees Wednesday to tackle the state’s growing budget crisis, a pair he said brings together “a bold record of public and private-sector success to solve our most pressing problems ...
States want federal finance system - Skynews.com The states say they are running out of money for capital works as a result of the federal government's bank deposit scheme. State treasurers want the government to intervene and create a financing scheme between the commonwealth and states ...
Islamic finance no longer immune to crisis - Economic Times MANAMA: Islamic banking can no longer claim immunity from the global financial crisis now that it is hitting the industry's main source of funding and property values in the Gulf Arab region. The industry escaped the immediate fallout from the crisis ...
State looks at sliding gas tax rate to help finance halted road ... - ABC 4 SALT LAKE CITY (AP) - With gas prices dipping below $2 per gallon, state officials are considering changing the gas tax to raise money for transportation projects. Gov. Jon Huntsman - in the midst of developing his budget - is looking at altering the ...
Finance committee cuts Inheritance and gift tax rate to 10% - China Post The finance committee of the Legislative Yuan yesterday completed the first reading of the draft revisions to the Inheritance and Gift Tax Act, reducing the tax rate to a single level of 10 percent from the existing maximum of 50 percent, but having ...
Car dealers face $250m credit shortfall - National Business Review Finance industry experts estimate that New Zealand’s motor dealers urgently need $250 million dollars worth of credit to keep their businesses afloat. The shortfall is due to the sudden withdrawal of large industry players GE Money and General ...
Brazil sells $1.96 bln in repos to finance trade - Reuters SAO PAULO, Dec 3 (Reuters) - Brazil's central bank on Wednesday sold $1.958 billion of $2 billion on offer in a dollar repurchase agreement auction aimed at increasing trade finance lines that have been squeezed by the global credit crisis. The bank ...
Tepid response to NBFC papers - Business Standard Life is getting tougher day by day for non-banking finance companies (NBFCs). With the interest rate cycle showing signs of moderating, they are finding no takers for their short-term debt instruments, even for their AAA-rated papers. As a result ...
Excise duty on fuel may be slashed - Daily News and Analysis MUMBAI: With Prime Minister Manmohan Singh at the helm of finance ministry, one can expect a steeper cut in fuel prices once the Assembly elections are over. Singh has been in favour of a cut in excise duty on petroleum products, a demand that has ...
SRA International CFO steps down - Birmingham Business Journal Steve Hughes, SRA International Inc. ’s executive vice president and chief financial officer, said he will retire after nearly three decades at the company. Hughes will leave the Fairfax-based provider of technology and strategic consulting ...
