1st and 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages?

The hassle of making two monthly mortgage payments has prompted many homeowners to consider refinancing their 1st and 2nd mortgages into one loan. While combining both loans into one mortgage is convenient, and may save you money, homeowners should carefully weigh the risks and advantages before choosing to refinance their mortgages.

Benefits Associated with Combining 1st and 2nd Mortgages


Aside from consolidating your mortgages and making one monthly payment, a mortgage consolidation may lower your monthly payments to mortgage lenders. If you acquired your 1st or 2nd mortgage before home loan rates began to decline, you are likely paying an interest rate that is at least two points above current market rates. If so, a refinancing will greatly benefit you. By refinancing both mortgages with a low interest rate, you may save hundreds on your monthly mortgage payment.

1st and 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages?

Furthermore, if you accepted a 1st and 2nd mortgage with an adjustable mortgage rate, refinancing both loans at a fixed rate may benefit you in the long run. Even if your current rates are low, these rates are not guaranteed to remain low. As market trends fluctuated, your adjustable rate mortgages are free to rise. Higher mortgage rates will cause your mortgage payment to climb considerably. Refinancing both mortgages with a fixed rate will ensure that your mortgage remains predictable.

Disadvantages to Refinancing 1st and 2nd Mortgage

Before choosing to refinance your mortgages, it is imperative to consider the drawbacks of combining both mortgages. To begin, refinancing a mortgage involves the same procedures as applying for the initial mortgage. Thus, you are required to pay closing costs and fees. In this case, refinancing is best for those who plan to live in their homes for a long time.

If your credit score has dropped considerably within recent years, lenders may not approve you for a low rate refinancing. By refinancing and consolidating both mortgages, be prepared to pay a higher interest rate. Before accepting an offer, carefully compare the savings.

Moreover, refinancing your two mortgages may result in you paying private mortgage insurance (PMI). PMI is required for home loans with less than 20% equity. To avoid paying private mortgage insurance, homeowners may consider refinancing both mortgages separately, as opposed to consolidating both mortgage loans.

1st and 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages?

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View her recommended mortgage refi lenders.

Find the Best Mortgage Refinance Companies

There are very many mortgage refinance companies in the world today. You can choose from private companies or public companies. You will find that one type of such companies will have the backing up of a bank. Financial institutions have also been known to be joining the mortgage refinancing sector. You might be having a problem when finding such companies.

The process to get one of the good mortgage refinance companies is illustrated below. Research would be the first step. Of the companies that are in your area, find out which of them have had the least number of disagreements with their clients.


A company that has had very few disagreements is a company that one can trust. It means that they are serious about their business and they give their clients satisfaction. You can also check their duration in the business. Due to the high level of cons that have been happening all over, it would be prudent to choose a company that has been in business for several years at least.

Find the Best Mortgage Refinance Companies

This will give you security when you are dealing with them. It also means that they have been in the business long enough to able to know the pros and cons of the business. The mortgage refinance companies that have been in the business for long have a higher chance of having the best interest rates in the market.

Alternatively you can inquire from close relatives and friends on which mortgage refinance companies they have used. Having had first hand experience with a company, a relative or a friend can be able to direct you on the do's and don'ts of mortgage refinancing.

They can be able to tell you of their experience with certain companies this can help you in saving time that one would use to physically find out for themselves the history of a certain company. They may also warn you on companies that they have had a bad experience with. Another method that one can find a mortgage company is through the internet.

There are very many online mortgage companies that can be found on the internet. From these sites you will be able to find which companies will work best for you. You can contact them and inquire with a few questions before you make up your mind. Online refinance companies are easier to research as they are on the internet and in a few hours you will have gotten one that suits you.

Find the Best Mortgage Refinance Companies

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Can I Refinance With Late Mortgage Payments

Being late on the mortgage is something that many home owners never experience. But for those who have had past due payments they know how stressful it can make life. You have probably asked yourself, can i refinance with late payments? Well rest assured because the answer is yes! Read on to find out what programs will allow you to refinance when you have delinquent mortgage payments.

Late Mortgage Refinance Programs


How long ago your late payments occurred will dictate what programs you can use to refinance your home loan. If they were over twelve months ago you can use FHA programs to not only get a low rate but also a stable fixed rate mortgage as well. To qualify for this type of loan you will need to have debt to income ratios below 45% and your property taxes must be current.

Can I Refinance With Late Mortgage Payments

Your other option would be a sub prime loan. Sub prime mortgages are available for borrowers that have late payments up to ninety days late and credit scores down to 500. The only drawback to these loans is they have high interest rates that often are over 10% and they also do not allow you to borrow much more then 80% of your homes value. Many sub prime loans are adjustable mortgages and if you cannot get your credit up to a higher level when the ARM begins to adjust you could be in for a major problems. While these loans have gotten a lot of bad press lately they can help you get straightened out but only if used correctly. If you are taking out this type of loan make sure that you opt for the fixed rate option.

When you start to miss mortgage payments and realize you need some sort of help it can seem overwhelming. But take a deep breath and talk to a seasoned mortgage broker who can help get you into the right loan program to keep your home from foreclosure and your credit rating in tact.

Can I Refinance With Late Mortgage Payments

Learn more about a Sub Prime Loan and the new FHA Secure loan program that can help save your home and credit rating at http://www.mkemortgage.net

What Credit Score Do I Need to Refinance My Auto Loan? 3 Things You Should Know

Auto loan financing is one of those things that most of us never even think to look into. We just naturally assume that we are locked into our current auto loan - and its interest rate - until we pay off the loan or sell the car.

However, refinancing your car loan can actually be a really smart thing to do. In fact, there is really nothing to hold you back from refinancing right away. Specifically, there are no laws that say you cannot refinance your loan.

\"Refinance Auto Loan\"

Your only conditions for refinancing would be to find another lender who is willing to grant you a loan. And, in most cases you would only want to move forward with the car refinance if the new lender can promise you a lower APR (interest rate) than you have on your existing loan.

What Credit Score Do I Need to Refinance My Auto Loan? 3 Things You Should Know

The interest rate for which you can qualify depends upon two main factors: a. the average auto loan interest rates in the market today, and, b. your current FICO or credit score.

If you are wondering, "What credit score do I need to refinance my auto loan?", here are 3 things you should know:

1. If you have an excellent credit score above 750, just start applying to auto refinance lenders:

The truth is, you can refinance your loan with any credit score, as long as you can find a lender to do it. If you have an "excellent" credit score of 750 or above, you really have nothing to do in order to prepare for getting a loan. Just start applying to lenders and take the best offer that comes along.

2. If you have a fair or good score about 620, do some homework first:

A score above 620 is considered "fair" and a score above 660 is considered "good." If you are in either of these ranges, you will want to see if you can bump your score up a bit before applying. To do this, start by running your current credit report from each of the three big monitoring agencies. Go through each report and look for any mistakes that could be holding your score down. If you find such mistakes, do not hesitate in protesting them. Then, wait 30 days or so before applying for refinancing and your score should have gotten significantly better by then.

3. If you have a poor score under 620, you can get approved but you have your work cut out for you:

When your score is under 620, you have what is considered "poor" credit. The good news is that you, too, can still qualify for a refinance loan. The key is to apply to at least 3-5 "bad credit auto financing lenders." Compare the offers you receive and choose the best one. You will be off and running in no time.

Consider these 3 tips as you apply for an auto refinance loan.

What Credit Score Do I Need to Refinance My Auto Loan? 3 Things You Should Know

Get a list of bad credit refinance auto loan lenders near you at: Bad Credit Auto Financing Deals.

Home Refinance Stimulus Package - Obama's Stimulus For Mortgage Refinancing and Loan Modification

Obama's government has come up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed specifically for all the borrowers who are facing financial hardships as they are not in a condition to repay the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages and the government would spend billion for helping the homeowners.

Obama's Stimulus Package has 2 main components:


1. Refinance

Home Refinance Stimulus Package - Obama's Stimulus For Mortgage Refinancing and Loan Modification

2. Loan Modification

Let us discuss each one of these components in detail:

1. Home Refinance Stimulus Package

· In this program the two most powerful mortgage lending agencies of the government Fannie Mae and Freddie Mac would refinance the home loans of all the owners who owe much more amount to the bank than the actual value of the house. The only condition for this package is that the mortgage must be a guaranteed one by Fannie Mae and Freddie Mac, and then even if you are strong enough to pay the entire extra amount, you can gain advantage of the program.

· But there is one major condition joined with refinance stimulus package and that is; the offer is only valid for the properties which are used for residential purpose. Any property which is lying like a building and no one is living inside, will not qualify for Obama's home refinance stimulus package.

2. Loan Modification Stimulus Package

· There have been special incentives that Obama's government is going to provide to all the lenders for doing loan modification on the existing home loans of the borrowers. According to this program, the homeowners can get rid of foreclosure by getting it done. The main features of this program would be; interest rate would be reduced and it can go down to 2% only, tenure of the loan would be increased to reduce monthly payment amount and borrowers will get waiver of late fees.

· With loan modification, lender will also take care of the total monthly payments that a borrower is making and it would not increase than 31% of the total monthly gross income.

Home Refinance Stimulus Package - Obama's Stimulus For Mortgage Refinancing and Loan Modification

To know more about Home Refinance Stimulus Package and to check if you qualify

Click Here --> Loan Modification Help

President Obama has offered 00 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

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