Refinancing a first and second mortgage requires some additional considerations. Depending on your capital, you may find that combining the two mortgages results in a higher interest rate. You may also have to comply with the PMI refinanced mortgage.

Refinancing Benefit You?

Refinancing two mortgages allows you to consolidate your loans into one payment, often reducing their monthly bill. You can also find lower rates under the circumstances.

People with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to take into account the interests of savings, not just monthly numbers can be misleading.

However, if less than 25% of the capital, could end highest rating. With less than 20% of the capital, also have to pay for private mortgage insurance. Even with these factors, you may still find that you save money by refinancing.

You've done your research?

To see if refinancing makes sense for you, research mortgage lenders. You can go online and request quotes and terms. Look at the different offers, and work the numbers. An online mortgage calculator can help you determine monthly payments and interest costs.

An easy way to compare the costs are added to the first of their mortgage interest payments. Use this number to compare interest payments with each potential mortgage.

You must also take into account the cost of refinancing. As with your original mortgage, you have to pay fees and points. You want to make sure that you can recover these costs from savings in interest.

Why do you want to Refinance Both Mortgages?

Refinancing of mortgages, while convenient, you may decide to refinance only one or two separately. With its main mortgage, you can expect to get low rates.

A second mortgage usually qualify for higher rates but you can lock in. You can convert the line of credit to a real mortgage. Once again, you'll have to investigate financial packages before signing with a lender.