Consolidating first second mortgage loans

The average credit card interest rate is around 15%.

By comparison, mortgage rates are currently in the 3–4% range.

If you are looking to consolidate your current loans (such as a first mortgage and a home equity loan) into one mortgage, a number of lenders would look at doing this for you.

They would determine the value of the property, whether or not the equity loan was taken at the same time as the first loan or as “cash out” after the fact, how often the line or loan has been used, the value of your home, your credit, etc …

Home equity is the appraised value of your home minus the amount you still owe on your loan.

The more equity you have, the more money you may be able to get from a cash-out refinance.

It gets tricky if you have used the line in the past 12 months, underwriting guidelines usually call this a cash out refinance even if you are refinancing the 2nd (Home Equity line).

Knowing how to refinance a second mortgage can be one of the most important things you will ever learn to do as a homeowner.

Refinancing can reap big dividends if you approach it in a deliberate and knowledgeable manner.

HARP is only for Fannie Mae- and Freddie Mac-guaranteed loans.

The 2012 multi-billion-dollar settlement between the biggest banks and 49 state attorneys general (over robo-signing) to aid distressed borrowers included money to pay off second mortgages in some states.“It’s worth finding out if that’s the case in your state by checking the website for your state’s AG to see if your existing servicer is participating,” Garcia says. Search the AG’s website for “mortgage settlement” to find the information.


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