How to Modify a Second Mortgage

It can be straightforward to modify your second mortgage.

You might want to modify a second mortgage for many reasons. Perhaps your finances have changed and you need to increase the amount or length of the mortgage. Your mortgage deal could be improved by changing the type of interest rate formula from, for example, a fixed rate mortgage to a variable rate. Modifying your second mortgage is straightforward, if you have made repayments on time.

Instructions

1. Decide what changes you want to make, and then check your mortgage terms and conditions carefully. Penalties may apply if you modify your second mortgage within a certain time. Calculate the cost. Depending on your circumstances it may be better to wait to avoid the penalty fees.

2. Call your lender. Tell your lender that you want to modify your second mortgage and need to know their requirements. Get the company to confirm that penalties don’t apply. Check what fees, charges or administration costs do apply.

3. Get your lender to mail the forms needed to modify your second mortgage. Complete the forms carefully. Mail the forms and any other information required to your lender. Don’t forget to enclose the fee, if applicable.

4. Wait for your application to be processed. If you’ve requested an increase in your second mortgage, the property will need revaluing. Your new mortgage documents will be mailed.

References

• Federal Trade Commission: Looking for the Best Mortgage
• Federal Reserve Board: Looking for the Best mortgage
• Federal Reserve Board: 5 Tips for Shopping for a mortgage