Your home equity loan or home equity line of credit could dash your dreams of reducing your monthly mortgage payment through a refinance. Blame a complicated mortgage-lending quirk known...
Combine Two Mortgages into One Through Refinancing
Many homeowners have taken advantage of the equity in their homes to acquire second mortgages in the form of home equity loans or home equity lines of credit. In some cases, a secondary loan has helped them avoid closing costs, private mortgage insurance, or higher rates charged to jumbo loans. And sometimes, using an equity-based loan allowed them to fund a home improvement project, finance the purchase of a car or swimming pool, pay off credit cards, or help pay year-end taxes in a convenient and easy fashion. But if your loans carry higher than necessary interest rates, it may be a good idea to do a mortgage refinance and simplify your financial life with a single, low-interest rate mortgage.
Refinancing can help!
Although financial advisors may admonish you not to put all your eggs into one basket, when it comes to consolidation of outstanding obligations, most would agree that one basket to encompass all your loose ends is the preferred way to go. With interest rates still hovering near record-setting lows, there's no time like the present for homeowners to take out a single low-interest rate mortgage, in order to dispense with any higher-interest loans you may have on your books.
Save money through a mortgage refinance
The interest you can save by securing an attractively priced fixed-rate mortgage will lower your monthly payments and also cut substantial amounts of interest off the life of your loan. By tallying up the long-term costs of a first and second loan, and then subtracting the cost of a single mortgage obtained through refinancing, you can get a clear picture of your potential savings. In most cases, you can save an astonishing amount of money, which will more than pay for the incidental expenses incurred through refinance charges. Plus, they may be tax deductible.
It's a great idea to simplify your life by combining two mortgages into one. Then, you can save the multi-tasking for your office.
Just how much of a burden is student loan debt on potential first-time homebuyers? Enough to put an 8 percent dent in total 2014 home sales, according to a new study.
From high-end condos in Hawaii to inexpensive trailer parks almost anywhere in the United States, homes on leased land are a way to own a home for a lot less money than a house on land...
A new type of affordable 15-year mortgage aimed at moderate-income and flawed credit borrowers is getting a tryout by Bank of America and Citigroup.
Latest from our Contributors
Browse Mortgage Rates
Browse our comprehensive guides to popular topics related to mortgage and personal finance.