Second Mortgage Refinancing

Second Mortgage Refinancing

Many people would like to know about second mortgage refinancing and second mortgage rates. First let’s look at factors that can affect refinancing second mortgage. A property can have a first mortgage and a second mortgage, the size of the first mortgage and the loan to value ratio will determine how much money you can get for a second mortgage refinance.

Your credit rating will also be a major factor in second mortgage refinancing. A very good credit score will mean that the borrower may be able to go to a regular bank such as RBC or BMO, this would also have the lowest rate of interest.

If your credit score is low then a second mortgage refinance usually means that the mortgage agent will need to arrange financing through a private lender. The private lender will base the lending decision on the level of equity in the property; most private lenders will not go above a loan to value ratio of 90%. A private lender may also charge a higher rate of interest due to your poor credit rating.

A mortgage agent can arrange for an appraisal of your property, this will help determine the loan to value ratio of your home. The mortgage agent can also arrange a lawyer to handle all the paperwork related to the transaction. It is highly recommended that you have a lawyer do the paperwork since they have “errors and omissions” insurance and this protects all parties involved in the refinance second mortgage.

A low interest second mortgage refinance can be used to combine debt from overdue credit cards, kitchen and bathroom renovations or to repay any personal loans to friends and family. A refinance second mortgage should result in lower monthly payments than what credit card companies charge; take a look at what interest your credit card company charges, some rates are as high as 29%. Interest on second mortgage refinancing should be lower because the debt is now secured against your property.

To get the best possible deal on a second mortgage refinancing please give us a call, there is no charge for the initial consultation and we may be able to save you a lot of money.

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