When to Refinance a Second Home Mortgage [mortgageinsurancequotes.blogspot.com]
Home loan professional Rob Spinosa of www.themortgagedictionary.com defines and explains the mortgage subordination process. Many homeowners attempt to refinance a mortgage and already have a second mortgage or home equity line of credit (HELOC) that needs to stay in place. In order to make this happen, the new first lender must initiate a process to subordinate the junior lien, and the holder of the second mortgage must agree to the subordination. From a borrower standpoint, this process must be understood so that the refinance transaction progresses smoothly and closes successfully and without additional cost or trouble. Rob covers the most important points about home loan subordinations and provides tips on how to work with your bank or mortgage broker. Also mentioned are some of the fundamentals of real estate title and ownership interests and rights. This short video contains the basics, and answers, "What is a re finance subordination?" and "How to refinance with a second mortgage?" For more information or to begin the pre-approval process, contact Rob Spinosa at rspinosa@rpm-mtg.com or by phone at 877-270-5959. Rob is a mortgage banker at RPM Mortgage in Mill Valley, California, just north of San Francisco. He is able to assist anyone in the state of CA, and can be found on social media platforms as below www.facebook.com www.youtube.com www.linkedin.com www.twitter.com
mortgageinsurancequotes.blogspot.com How to Refinance: Mortgage Subordinations
Since that first article above (written in 2008 with rates around 6.0%), 30 year mortgage rates (ChicagoOptions: ^TYX) have consistently fallen for four consecutive years, making now actually the best time in a generation (so far) to refinance ... Thinking of Refinancing Your Mortgage? What's the Rush?
Knowing when to refinance your second mortgage is extremely important the timing has to be just right, it should have a low interest and low or no fees. Prior to refinancing make sure that it will be in your best interest, you should be able to save money or have lower mortgage payments if you refinance.
Lower Rates Equal Savings
Refinancing can save you hundreds of dollars a month with lower interest rates. Knowing when to refinance is the key to saving the maximum amount of money. To check whether or not you can save money compare your current mortgage to the potential new mortgage plan. Having both your first and second mortgage can also reduce your monthly expenses; however it will work only if your current primary mortgage has a high rate of interest.
Protect against From Rising Rates
Once you have refinanced there is still a possibility of rising interest rates.
By having an adjustable rate second mortgage you can protect yourself from rising interest rates. Even if you have caps in place the length of the loan can be extended and as a result adding to your total on the loan costs. If you refinance a fixed rate will provided peace of mind because your monthly payments won't be more than the month before.When Refinancing Timing is Important
Most often with home equity home loans you would normally pay most of the interest in the beginning of the pay period. This means that by the end of the loan schedule you will be paying very little interest. So refinancing and knowing when to refinance, maybe even early, can bring you savings later.
If moving is a good possibility you would want to hold off on refinancing because of closing cost.
Although the closing cost only equal 1-3% of the total principle it takes a few years to regain your cost. Related When to Refinance a Second Home Mortgage Articles
