Refinance 2nd Mortgage
If you have a 2nd mortgage and a lot of short-term debt, you may consider consolidating by refinancing your 2nd mortgage. One option is to refinance your 2nd mortgage into your 1st mortgage. In doing so, you could do a cash-out refinance of your 1st mortgage, consolidating both your existing non-mortgage debts and your 2nd mortgage and ending with just one mortgage and one monthly payment. If you elect to take this option, you could realize a significantly lower monthly payment. However, you may pay a bit more in interest, under certain circumstances. If you have less than 20-percent equity, you will also have to pay private mortgage insurance.
Alternatively, you could consolidate your non-mortgage debt into your 2nd mortgage. If you take this option, you leave your 1st mortgage alone and opt for a cash-out refinance on your 2nd mortgage. Depending on your unique circumstances, this option may result in a somewhat higher monthly payment, but lower costs over time.
Take Your First Step to Refinance a 2nd Mortgage
Without question, there are pros and cons to either way you choose to refinance. You might even find you save more by refinancing your 1st and 2nd mortgage separately. The only way to learn your options is to start doing your mortgage refinance research.
We can help here at 4MortgageRateQuotes.com. You'll complete a simple online form, letting us know what you are looking for in a refinance loan and we'll match you with up to four lenders that fit your situation. You'll receive up to four refinance rate quotes, with no cost and no hassle.