Consolidating first and second arm mortgages
A second mortgage is quite simply a loan taken after the first mortgage.
With the advantages of today’s competitive mortgage rates, you can eliminate the higher rate you may be paying on a second mortgage, by refinancing into one first lien mortgage.
You may choose to take out a second mortgage in order to cover a part of buying your home or refinance to cash out some of the equity of your home.
It is important to understand the differences between a mortgage and a home equity loan before you decide which loan you should use.
The shorter the term of the loan, the higher the monthly payment will be.
It is always a good idea to talk about the terms of repayment with the lending mortgage company to select the loan that will best suit the needs of the homeowner.