Question:

Is refinancing a 2nd mortgage loan possible?

Answer:

Refinancing a 2nd mortgage loan is possible in any scenario. Either with or without the first mortgage.

A 2nd mortgage can be refinanced separately, if you deem it necessary. If your second carries high rates, and you have been a good borrower, your lender may help you switch to a lower rate 2nd mortgage loan without much paperwork and great closing costs. If the lender is unwilling to cooperate, you could consider other lenders, but have to think if the new rate will make up for the high closing costs of a second mortgage.

Another way to go with refinancing a 2nd mortgage loan is to combine a second and a first mortgage. Since refinancing a 2nd mortgage loan is only possible after at least a year from signing the contract has passed, it is a good idea to have your house appraised if you suspect house value has risen.

Even though it may be a good idea to refinance a 2nd mortgage together with the first mortgage into a new first mortgage loan, make sure closing costs and the new rates will not outweigh the convenience of having a single mortgage on your property.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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