Consolidating first second mortgage loans
You’ll need to do the math to see if this is the case for your situation.
The process should begin with an examination of your current loan terms so you can properly assess what refinancing will mean for you.
Combining first and second mortgages into one is an appealing option for many homeowners.
As with any other loan, your options range from regional banks and credit union to a mortgage broker, or industry professionals you trust.
In many cases, this secondary loan has helped the homeowner avoid private mortgage insurance or the effect of raised interest rates that were applied to jumbo loans.
Loans using equity as collateral have allowed homeowners to complete improvements and renovations to their property, debt restructuring or investments.
So, for the next 15 years you are required to pay down the loan like a mortgage.
In this scenario, the 5 monthly payment has skyrocketed to 0 per month.
From there you can use a mortgage calculator – it is the easiest way to compare how your current mortgage obligations will measure up to a new deal.