If you have a second mortgage or a home equity loan as it is often called, the likelihood is that you didn’t take it with the intention of having it forever. While they certainly serve a purpose and can be a great help when you are in a bind, your goal should be to combine your first and second mortgage into one mortgage that offers flexibility, lower payments and offers a quick reduction in the principal balance of your mortgage.
This task can often prove difficult and many people try to pay out their secondary financing by going back to the bank that holds their first mortgage. The reality of this scenario is that often borrowers find themselves being rejected because enough time hasn’t elapsed between the time they ran into their financial problems when they took out their second mortgage. There is also the possibility that they still don’t have enough time at their job or failed to get their personal income taxes up to date. Fortunately, this does not mean that you will be unable to consolidate your 1st & 2nd mortgage as there are options.
Finding a lender to consolidate your 1st & 2nd mortgage often means you will need a lender who is willing to overlook some of the reasons your bank declined you. Just because you don’t qualify for triple “AAA” financing doesn’t mean that you can’t get a good approval without paying nose bleed interest rates. Quite often we can consolidate first and second mortgages that are very similar to the mortgages being offered by the big banks, with only marginally higher interest rates. Depending on the size and rate of your mortgages, combining a first and second mortgage is almost always a win for the borrower.
Combining a 1st and 2nd mortgage can lower your monthly payments, improve your cash flow and allow you to focus on becoming debt free faster. If you aren’t sure whether you should consolidate your first and second mortgage, it is always prudent to consult a professional who can assess the financial benefits and pitfalls. If you have a first and second mortgage and want to know how consolidating them can help you, call us for a free consultation at 1-866-306-2637 or simply apply online and we can help you make sense of combining your first and second mortgage!