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The process of second mortgage refinancing can provide you with a number of benefits as a homeowner. When going through this process, you will need to keep several things in mind. Here are some tips for going through a second mortgage refinancing.
1. Check Your Credit Report
Before you start the process of refinancing your second mortgage, you may want to consider getting a copy of your credit report. Any lender that you work with is going to refer to your credit report right off the bat. This means that you should take a look at what they are going to be seeing before you talk with them. This will help you identify any potential problems that you might have. If there are errors or omissions, you can take the necessary steps to correct them before you apply for another mortgage.
2. Credit Rescore
After looking at your credit report, you may find it necessary to improve your score. In most cases, it will take 2 to 3 months before any changes that you make would show up on your credit report. In order to speed up this process, you might want to consider using a credit rescore company to help you out. A credit rescore company is going to have a special relationship with the credit bureaus. They will ask you how much you want your credit score to improve by, and they will immediately start assessing your credit history in order to figure out how they can help. If they discover any changes that need to be made, they will be able to implement these changes on your credit report within 2 to 3 days.
3. Shop Around
Before agreeing to work with a particular lender, you will want to make sure that you shop around a bit first. Researching options with multiple lenders will help ensure that you get the best deal in the market. Although interest rates are likely to be similar from one lender to the next, you will be able to find some differences from lender to lender. You may also be able to negotiate a better interest rate by shopping around. Many lenders are very competitive, and they may be willing to cut you a deal if they know that you are shopping.
4. Compare Closing Costs
When you are refinancing an existing mortgage, the closing costs should play a vital role in your decision to go with a lender. In most cases, the closing costs are going to amount to thousands of dollars. When you compare closing costs from one lender to the next, you will notice that there are some large discrepancies between them. When you apply for a loan, the lender is required to give you a good-faith estimate of closing costs within three days. You can use this estimate when you are shopping around to negotiate parts of the closing costs as well. You may be able to get a lender to eliminate a particular part of the closing costs.
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- Should You Refinance? Make Sure the Timing is Right
- 3 Common Short Sale Mistakes
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Alternatives to Getting a 2nd Mortgage
- Home Equity Loans for People with Bad Credit