Refinancing your second mortgage could help you secure a lower monthly payment. A home equity line of credit and a home equity loan are just two options that homeowners have for second mortgage loans. A home equity line of credit, or HELOC, is similar to a credit card because your balance varies based on the usage of your credit . The proceeds from a house equity loan are disbursed in a lump sum and won’t allow you to draw additional money. Both a HELOC plus a home equity loan may be used to fund large projects such as home improvements, wedding expenses, college expenses or debt consolidation. Either loan could be secured as a second mortgage lien.
Produce a written plan that outlines your goals for refinancing. Your plan must include things you want to combine, such as credit cards, student loans along with your existing second mortgage. If your goal is to refinance and receive a lower rate of interest, your plan can indicate several ways you could allocate your monthly savings.
Review a current statement from your second mortgage lender, and call the customer service department or go to your lender’s site. Inform your second mortgage lender you want to refinance your loan. Offer your lender permission to review your credit and loan history.
Consult different creditors to ask about second mortgage loans. Review their information about second mortgage product offerings. You may qualify for a home equity loan or a home equity line of credit. Complete the requested information to compare prices.
Opt for the lender that provides the best conditions for refinancing your mortgage. Forward your loan records to the mortgage expert that will allow you to complete your refinance.