Is It Time to Refinance My Second Mortgage?

When the timing is right, refinancing a second mortgage can be a significant boon to your finances. Ask yourself the following questions to determine if now is the right time for you to refinance.

• Are interest rates climbing? If your second mortgage is an adjustable-rate loan and interest rates are rising, you might use Refinance My Second Mortgage to find a fixed-rate loan and lock in a reasonable interest rate. This will save you from expensive rate hikes in the future.
• Is your monthly payment a strain? Refinance My Second Mortgage can also help you reduce your monthly payment on your second home loan. If interest rates have not dropped since you took out your second mortgage, you can still lower your payment by extending the term of your loan. For instance, if you have been paying on a 30-year mortgage for seven years, refinancing at the same interest rate for a new 30-year loan will still save you money because you will have additional time to repay it.
• Is your ARM too unpredictable? Some borrowers jump into adjustable-rate mortgages without really understanding the inherent uncertainty associated with such loans. The instability of the monthly payments on your ARM may prove too stressful, in which case Refinance My Second Mortgage can help you find low rates on a fixed-rate loan with unchanging monthly payments.
• Have you made improvements to your credit? Perhaps when you applied for your current second mortgage, you had a few blemishes on your credit. As time has passed, these derogatory items may have gone away, thus raising your credit score. If your credit has improved since you applied for your original second mortgage, you can probably qualify for a much better rate now by refinancing.
• Have you achieved more than 20% equity in your home? With more than 20% equity in your home, you no longer have to pay for private mortgage insurance (PMI). When you hit the 20% mark, you can call your lender to request that your PMI be canceled. If your lender won't cooperate, you can instead use Refinance My Second Mortgage to find a new loan that doesn't require mortgage insurance.
• Has your income increased? For borrowers who have higher incomes now than when they originally applied for their second mortgage, refinancing makes sense because they can shrink the term of their loan to save on interest. For example, you can change the term of your second mortgage from 30 years to 15 and save thousands of dollars on interest expense.