Tuesday, October 23, 2007

Home Loans Refinance Options - Refinance Two Mortgages Into One

With two mortgages, it is alluring to consolidate the home loans into one refinanced mortgage. But, this isn’t always in your best interest. Depending on a number of factors, you may happen that refinancing separately may measure up you for better rates.

Refinancing Options For Multiple Mortgages

You have got three options when it come ups to refinancing multiple mortgages. You can compound both loans into one, or you can refinance each account separately. The other option is to only refinance the higher rate mortgage.

The rates available to you will depend on your current credit score, market indexes, and your equity. So in some cases, you may happen that keeping your low rate original loan while refinancing the higher rate second mortgage will salvage you the most money.

As odd as it may seem, refinancing your two mortgages separately can measure up them for lower rates than combining the two. This is especially true if you have got got small equity.

Requesting Quotes For Mortgage Refinance

To happen out which option will salvage you the most money, you have to bespeak quotes. Ask for APR quotes for each of the three options from respective lenders. You may happen that a mortgage broker land site will rush this procedure up by allowing you to compare multiple commands side by side.

Remember too that points should be considered as a factor in your decision. Paying points for a loan you don’t program to maintain for respective old age may be more than expensive than a higher interest loan.

Do the Mathematics Before Refinancing Mortgage

To happen the reply to which option is the best, you will have got to make a small math. Fortunately, you can utilize an online mortgage calculator to quickly come up up with the numbers.

With each loan quote, figure the difference in your mortgage payment if you refinanced. This number will demo you which loan can give you the top savings. But, you also need to see the cost of refinancing. So watershed the amount you will salvage each calendar month by the shutting costs, which include points, to determine how soon you will interrupt even.

While doing these computations takes time, they will salvage you money and guarantee you do the right choice.


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