Refinancing And Second Home Mortgages

A Bayfield Mortgage Professional can help you decide whether a mortgage refinance or second mortgage is right for you. There are many good reasons to refinance your mortgage. You may wish to:

  • Consolidate your debt. Simplify your monthly payments and pay off higher interest debts such as credit cards with a low interest rate mortgage loan.
  • Lock in to a lower mortgage interest rate. Take advantage of today’s low mortgage rates by refinancing to a fixed rate or variable rate mortgage.
  • Change your payment terms. Extend the term of your mortgage to lower your monthly mortgage payments or shorten your term and save interest over the life of your loan.
  • Take advantage of the equity in your home. Secure a loan for whatever you may want to do, whether it’s for a vacation, a new car or buying your dream vacation home, at a rate much lower then credit cards or finance companies.
    • Home Equity Loan: Drawn against the equity you have in your home, you repay a home equity loan in monthly payments along with your mortgage.
    • Home Equity Line Of Credit: Drawn against the equity you have in your home, a home equity line of credit allows you to borrow against your property whenever you may need to.
    • Cash-out Refinance: Replaces your old mortgage with a new loan and a higher balance, you receive cash for the remaining mortgage balance.
    • Second Mortgage: Taken out in addition to your first mortgage, a second mortgage uses your home as collateral against the loan.

What’s better for me? Second home mortgage or refinance?

Second mortgages usually carry higher interest rates than first mortgages. If you have enough equity in your home you may prefer to refinance your first mortgage at a lower rate, and simply borrow funds in excess of your current loan balance. On the other hand, despite higher interest rates, second mortgages have lower transaction costs and are easier to obtain. A Bayfield Mortgage Professional can help you decide which option is best for you.

Find a mortgage broker near you or apply online.