Second Mortgage Calculator - Refinance & Consolidation
This second mortgage calculator figures the savings from refinancing and consolidating your old 1st and 2nd mortgages into a single loan.
This calculator shows you the monthly payments, how much you will save in interest from the refinance/consolidation, and it figures how long it takes to break even on the closing costs.
Please note: Don't include the escrow portions of your monthly payment (taxes, insurance) - just include principal and interest.
First And Second Mortgage Consolidation
A second mortgage also known as a Home Equity Loan is another type of loan taken out against your home after you already have a first mortgage. This is mostly necessary when you need a huge amount of money. The second mortgage loan can be used for such things as paying off debt, home remodeling, or to purchase a vacation home or pay the children’s education. Generally, second mortgages have lower interest rates and that makes it more attractive to borrowers. But this type of loan is not easy to get and is very risky since it will take your primary home as collateral.
If you have first and second mortgages and you have difficulty paying both mortgages, or if you would prefer the convenience of a single payment and combining both loans into one, you have the option to consolidate both mortgages through refinancing. Refinancing both loans together can help you save a lot of money from interest. Generally, the lenders would require you to wait at least a year after receiving your second mortgage before refinancing it. At this time, your home could have appraised and this will give you security that your new loan will be lower than the current market value of your home.
Before refinancing any mortgage, study carefully your options. Use the second mortgage calculator to determine how much you will save from interest for refinancing and then make the best decision that you can.
What Are Your Other Options If You Want To Refinance
Before Taking A Refinance Loan
Before you apply for refinancing, calculate your potential savings to your costs. If your first and second mortgages both have low fixed interest rates and there isn’t a large gap between those rates, the costs of refinancing may be greater than your savings. The second mortgage calculator above will help your do your calculations.
Second Mortgage Calculator Terms and Definitions
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