For example, when borrowing ,000 to make home repairs, it may not be a good idea to select a loan that would require repayment of the loan within one to 2 years because the payments each month could be too high to manage.
All companies, including mortgage lenders charge a lending fee.
A second mortgage is quite simply a loan taken after the first mortgage.
There can be various reasons to take out a second mortgage, such as consolidating debts, financing home improvements, or covering a portion of the down payment on the first mortgage to avoid the property mortgage insurance (PMI) requirement.
It is important to understand the differences between a mortgage and a home equity loan before you decide which loan you should use.
Homeowners can also refinance to combine a first and second mortgage into one loan.
With the advantages of today’s competitive mortgage rates, you can eliminate the higher rate you may be paying on a second mortgage, by refinancing into one first lien mortgage.
If you own a home, there's a good chance you'll do a mortgage refinance at some point.
Few borrowers stay with their original home loan for a full 30 years; most either refinance or sell the property long before the full term runs its course.