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Lower Mortgage Payments Without Refinancing Article
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Refinancing Your Second Mortgage
from:Home 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.
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Lower Mortgage Payments Without Refinancing News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 OregonLive.com | 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% US 30-Year Mortgage Rate Falls to Record 3.78 Pct. |
Mortgage Q&A: Borrowers hit by mess others made - Washington Times
 Washington Times | Mortgage Q&A: Borrowers hit by mess others made Washington Times The Home Affordable Refinance Program (HARP), initiated a couple of years ago, was designed to help folks with good credit and an evident ability to repay their loans. They were unable to refinance to a lower rate, however, because their property ... |
When Does It Make Sense to Refinance? - MarketWatch (press release)
 New Zealand Herald | When Does It Make Sense to Refinance? MarketWatch (press release) The big question: When is the right time to refinance? "Many borrowers have the opportunity to reduce mortgage payments at a time when expenses such as gas and healthcare are rising," said Ray Brousseau, executive vice president of Carrington Mortgage ... Time to Refinance While Mortgage Rates are So Low Refinancing Now: Lower Rates, Fees Coming Soon Refinances Soar Three Straight Weeks |
Bankrate: Mortgage Rates Hold at Record Lows - MarketWatch (press release)
 Eastern Morning Herald | Bankrate: Mortgage Rates Hold at Record Lows MarketWatch (press release) The average 30-year fixed mortgage has an average of 0.41 discount and origination points. To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/ . The average 15-year fixed mortgage rate inched lower to a new record of ... Mortgage refinancings up for third week |
Homeowner Refinance Bill Moves into Committee - C-SPAN
 C-SPAN | Homeowner Refinance Bill Moves into Committee C-SPAN On Thursday, the Senate Banking Committee discussed a measure to help homeowners with government-backed loans refinance to lower interest rates. Democratic Senators Bob Menendez (D-NJ) and Barbara Boxer (D-CA) introduced the bill, ... |