| If your existing second mortgage loan has a high | | | | mortgage to reduce your monthly mortgage |
| interest rate, you may be thinking about refinancing. | | | | payments. Here are some tips for a successful |
| You are not alone. Millions of Americans have high | | | | second mortgage refinance: |
| interest second mortgage loans from purchasing their | | | | Review your second mortgage loan contract to |
| homes at 100% financing - even with bad credit. | | | | ensure that there is no prepayment penalty associated |
| Like most Americans, when we purchased our home, | | | | with loan. If there is a prepayment penalty clause, |
| four years ago, we took out a first mortgage loan for | | | | contact your lender to discuss your options. |
| 80% of the home value and then a second mortgage | | | | Shop around for the best loan terms. Don't rush into a |
| loan for 20% of the home value. The first loan was at | | | | loan with the first lender, who knocks on your door. |
| 7%, while the second loan came with a whopping | | | | Your loan is a package that comprises of interest |
| interest rate of 10%. Since we knew, we could | | | | rates, fees, points, prepayment penalty clauses, balloon |
| refinance the second mortgage, we charged forward. | | | | payment clauses, etc. Make sure you understand your |
| Six months later, our home value was up 10%, giving | | | | loan terms. |
| us enough equity to refinance the second mortgage | | | | Know and understand your fees. Your refinance fees |
| into the first mortgage. We ended up with one | | | | may include an application fee, points, appraisal fees, |
| mortgage, at a much lower interest rate. | | | | etc. If you are dealing with a reputable lender most of |
| If you are struggling with bad credit, you can still | | | | these fees will be minimal. |
| refinance your second mortgage into your first | | | | |