According to the Lending Tree website, a second home is a "one-unit property owned by an individual, occupied by the borrower for some portion of the year and not subject to any time-share ownership arrangement." Ownership of a second home can provide a residence near your favorite place to vacation, or facilitate a place to stay during extended weekends. A refinance of your second home could lower your mortgage payments and make vacationing more enjoyable.
Related Searches:
Difficulty:
Moderate
Instructions
1
Shop for a competitive mortgage loan. Contact your current second home lender to discuss refinancing. Also, visit the Lending Tree website to request multiple quotes from competing lenders. Refinancing a second home may require a more thorough evaluation of terms that are presented by lenders. Interest rates are typically priced about one percentage point higher on second homes. Risk is a factor that lenders consider on second loan products, as most borrowers would probably opt to pay their primary mortgage first.
2
Choose a lender that offers the lowest costs for your second home refinance. Get several good faith estimates to compare loan costs. Additionally, you should request truth In lending statements from competing lenders to compare the annual percentage rates.
3
Submit a loan application to refinance your second home. Your loan officer will provide a loan package for refinancing the mortgage on your second home. Assemble your required documents, such as proof of income, bank statements and tax information. A completed loan application will allow the lender to begin processing your refinance.
4
Meet with an attorney for the closing of escrow on your second home loan. You will be required to present identification and sign all required documents.
Homeowners often encounter difficulties refinancing if they have both a first and second mortgage on their home. Typically you cannot refinance your...
