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.