Consolidate 1st and 2nd Mortgages To Save Cash
Combining the refinancing of both your 1st and 2nd mortgages will most probably result in a much lower monthly mortgage loan payment. This application can potentially save you thousands of dollars in mortgage loan interest rates charges. By putting both mortgages together, you will most probably get lower interest rates than if you were to refinance the 2 mortgages separately. Not only that, you will also save on application fees and applicable charges.
You have some options to lower your mortgage loan repayments when you have decided to refinance them. Inevitably, the main objective to refinance mortgage loan is to get a lower or best mortgage rate. This means that you will also get to enjoy significant savings even if the new refinancing mortgage loan tenure remains the same. Adjustable rate and interest only mortgage loans will allow you to make the lowest monthly repayments, especially during the first few years of the mortgage loan. Saying this, also note that a fixed rate mortgage loan will offer you reasonable rates that are predictable in the future.
You can also choose to extend your mortgage loan term. By extending your mortgage loans to a 30 year mortgage loan, you stretch out repaying the mortgage loan principal, giving you a lower monthly payment. However, interest rates and charges will be higher than with a shorter term property mortgage.
So once you have decided the structure of the mortgage loan and terms you prefer, do check out on the loan lender to find out the different mortgage packages that they are offering. Because it is a pretty competitive market, very often you find good promotions almost every other week.
Be wary of paying high closing costs if you intend to refinance your mortgage loan again in the future. This is because you will only really see the impact of refinancing mortgage loan when you see out a mortgage loan agreement.
Don’t always be driven only by prevailing interest rates. At times, mortgage loan lenders will give you the best mortgage rates especially if you have a very good property on hand. So weigh out all the information and make an informed choice for your property mortgage.