How to Refinance a First & Second Mortgage
Refinancing a first and second mortgage together is a simple process that is quite similar to a first mortgage refinance, but the two loans are combined to get a better overall interest rate. Consolidate debt by refinancing with advice from an experienced mortgage broker in this free video on personal finance.
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Hi, this is Matt McKillen with Innovative Financial Group. I had a client call me today, and the question that was posed to me was 'How do I refinance my first and second mortgage?' It's really not a difficult process. You have your first mortgage from when you purchased your home. And maybe you took out a second mortgage, which could either be a home equity line of credit or a fixed rate second mortgage. And the two payments combined may be really high, and you're interested in possibly wrapping them together. It's a very simple process. You just treat it like you're doing a first mortgage refinance, period. It's just that when it goes for time to closing, the title company that handles your transaction is going to order a payoff from your existing first mortgage and for the current second mortgage on your home, so they can get the amount to pay the two loans off combined. So it's no different than taking a new first mortgage without a second. Basically the same process is involved. You have to qualify the loan. Usually a new appraisal's involved. And then they order payoffs on the two loans and combine them into one new mortgage, which usually ends up in a payment savings and a better overall rate than what the rate may be between the two loans individually. Thanks again for asking. My name is Matt McKillen with Innovative Financial Group.