November 20, 2012

Second Mortgage or Refinance

Current Refinancing Rates

While a refinance is a great way to get your finances in order, sometimes a second mortgage can accomplish many of the same objectives. Here are a few of the goals of getting a refinance:
  • Lower your monthly payment
  • Shorten your pay-off term
  • Optimize your loan structure
  • Consolidate your debt
  • Fund large, one-time expenses

The first three can only be accomplished with a refinance. The last two-consolidating debt and funding one-time expenses-can be accomplished with either a refinance or a second mortgage.

To decide between a refinance and a second mortgage, compare your mortgage interest rate with current market rates. If you're paying more than what's available, a refinance will lower your overall interest costs. If you're paying less, a second mortgage might be the better option. When the two rates are roughly comparable, many borrowers prefer the efficiency of a refinance-one loan, one monthly payment. It's also worth noting that refinance loans generally carry lower interest rates than second mortgages.

 

Speak with a Mortgage Specialist to discuss any questions
Contact US Mortgage Corporation toll free: 1-800-562-6715

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