When to Refinance a Second Home Mortgage [mortgageapproved.blogspot.com]
Knowing when to refinance your second mortgage is extremely important the timing has to be just right, it should have a low interest and low or no fees. Prior to refinancing make sure that it will be in your best interest, you should be able to save money or have lower mortgage payments if you refinance.
Lower Rates Equal Savings
Refinancing can save you hundreds of dollars a month with lower interest rates. Knowing when to refinance is the key to saving the maximum amount of money. To check whether or not you can save money compare your current mortgage to the potential new mortgage plan. Having both your first and second mortgage can also reduce your monthly expenses; however it will work only if your current primary mortgage has a high rate of interest.
Protect against From Rising Rates
Once you have refinanced there is still a possibility of rising interest rates.
By having an adjustable rate second mortgage you can protect yourself from rising interest rates. Even if you have caps in place the length of the loan can be extended and as a result adding to your total on the loan costs. If you refinance a fixed rate will provided peace of mind because your monthly payments won't be more than the month before.When Refinancing Timing is Important
Most often with home equity home loans you would normally pay most of the interest in the beginning of the pay period. This means that by the end of the loan schedule you will be paying very little interest. So refinancing and knowing when to refinance, maybe even early, can bring you savings later.
If moving is a good possibility you would want to hold off on refinancing because of closing cost.
Although the closing cost only equal 1-3% of the total principle it takes a few years to regain your cost. More When to Refinance a Second Home Mortgage ArticlesQuestion by Julio A: what's the current minumum fico score for doing a stated home mortgage refinance deal? i want to refinance my home,but my broker tells me that the minumum fico score is constantly changing,so,i want to exactly know what is the minumum score to do a stated refinance mortgage deal right now? Best answer for what's the current minumum fico score for doing a stated home mortgage refinance deal?:
Answer by danesgirl74
I would say 680 to get a conventional loan and that is the only kind of loan you can get with stated income. Keep in mind that you will likely be required to put 20% down payment and another 3-5% for closing costs.
Answer by iceman
Its not just fico score, they look at income also. If your income is suffiecent, you fico score can be a little lower, and vice versa. But in general around 650...
Answer by loan_solutions
at my brokerage we can currently do 70% LTV with a minimum of a 680 score. i don't know what that guy was talking about income for, the whole purpose of a stated loan is for people who don't have enough income. if your score is over 700 however we can go higher on the LTV
