Refinancing a Second Mortgage
A second mortgage, commonly referred to as a home equity loan, used to carry a stigma that the borrowers were experiencing financial hardship of some kind. Today, though, home equity loans are more common than ever. Homeowners frequently take advantage of second mortgages in order to affordably finance education expenses, the purchase of a new car, and other large cash outlays.
As home equity loans have become more popular, so have refinance second mortgage loans. Homeowners can choose to refinance their second mortgages or refinance rental property loans for the same reasons they might refinance a first mortgage: convenience, expedited repayment, and substantial savings. Many of the same principles and benefits that apply to first mortgage refinancing also extend to second mortgage refinancing, but the latter can be slightly more complex. Read on to understand how second mortgage and investment property refinance loans work and exactly how they can benefit you.
Refinance Second Mortgage Loan Basics
When you refinance a second home loan, you generally follow the same process you would with a traditional refinancing. First, you search for the most competitive rates on a site like ours by requesting free estimates on second mortgage refinance loans. Second, you calculate the total cost of refinancing a second mortgage to determine if the savings merit the cost. Finally, you pay off your current second mortgage with the new loan and then begin making payments to your new lender. In many situations, you might be able to bundle your second mortgage with your first into a new loan with a more affordable rate than either of your original home loans.
How to Refinance Rental Property Mortgages
If you own a rental property, your goal is undoubtedly to maximize your income from that real estate. A refinance rental property mortgage can help you do just that. Refinancing the loan on your rental property can help you make your monthly payments more reasonable and abbreviate the time it takes you to repay your rental property mortgage.
Investment Property Refinance Tips
Investment properties might include a vacation home, an apartment complex, and any other piece of real estate that it not your primary home and is purchased to generate income. An investment property refinance loan works identically to rental property refinancing. You go through the same steps and reap similar benefits in doing so. Complete the form at the top of the page to view rates for free on second mortgage, rental property, or investment property refinancing.
