Consumption and Real Estate
Can we refinance our second mortgage?
Question : Can we refinance our second mortgage?
We bought a house last year with two mortgages. Because we only put down 10% for the loan, having the second mortgage of 10% of the loan, this way we don’t have to pay for the insurance. This second mortgage has an interest rate of 9.75% while our other mortgage is at 6%. We want to refinance this second mortgage to a lower rate. Can we do that? Is there anything that preventing us from refinance just this second mortgage? There is no early payment (repayment) penalty on both of our mortgages. Thank you very much for your help.
refinance second mortgage
Best answer:
Answer by cheeba0228
most likely you wont be able to just do the second you will have to do the first as well combining them together. You should have done better research though. If you have good credit and a good history of paying on time then you could have been elidgable for programs that have no PMI up to 90%. My company has these if you are interested email me. cheeba0228@yahoo.com
It depends on the following:
1.How are property prices holding up in your area?
2.How strong is your credit profile now?
3.Are you willing and able to verify your income and/or assets?
Something that you need to be wary of are the modifications recently done to the Loan Level Pricing Adjustments made by Fannie Mae and Freedie Mac. Basically these are premiums that lenders are forced to assess onto interest rates depending on how risky a loan is. For instance, the rate of a 95% loan on an investment property will be significantly higher than the rate of an 80% loan on your own home because of the pricing adjustments assessed on rates on investment properties and loans above 80% due to the greater risk they represent to lenders.
Even more imperative is the need to make a decision that is inline with your long term financial plans. This means that any new financing you obtain should take into account your children’s 529 college savings plan (if applicable), any major expenses you’re contemplating in the immediate future (a new car, the purchase of a second home, the birth of a child, etc., etc.), your present investment strategy, your insurance needs and obligations or other important financial plans that can be complicated or even derailed if you make the wrong decision about your mortgage financing now.
If you’re looking for a comprehensive solution to your financing needs feel free to contact me at RLFunding@AOL.com. We are licensed in all 50 states and specialize in TAX FREE mortgages in the state of New York.
Best Regards,
J. Polanco
Financing Advisor
Robbins and Lloyd Mortgage Corp.
347 5th Avenue, Suite 1506
New York, New York 10016
http://www.RobbinsLloyd.com