Q: We have a first mortgage at 5.75% and a second mortgage at 8.75%. Should we refinance and combine the two?
A: If you have an equity position which allows you to consolidate both loans into a new first mortgage -- that is, after the refinancing, your loans don't exceed about 80% of the present value of the home -- and you plan on remaining there for at least several years, you should be able to realize some considerably interest savings with a single new mortgage. Use our mortgage calculator to see where you are in both mortgages, then calculate your interest costs after a consoldiating refinance.
- What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral.
- What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral.
- What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
- Are ten-year fixed-rate mortgages (FRM) available anywhere?
Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.
- Can I get copies of checks from a past refinance?
It's not going to be easy, that's for sure.