The second mortgage, secured with the same assets as the first, usually carries a higher rate of interest than the first mortgage.
The amount that can be borrowed is based on the equity in the home, which is the difference between the current value of the property and the amount that is owed on it.
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.
Not only will this calculator calculate the monthly payment and net interest savings (if applicable), but it will also calculate how many months it will take to break even on the closing costs (if applicable).
Combining your first and second mortgage can decrease monthly payments and interest rates substantially.
Accunet can calculate your current finances and help you determine how much you’ll see in savings by combining both mortgages into one new mortgage.
Combining mortgages allows the homeowner to pay a single, low-interest rate mortgage payment.
Whether or not combining first and second mortgages into a single payment is a good idea depends on several factors: How much equity you have in your home, the amount of your second mortgage, the length of time that passed since you secured the second mortgage and the homeowners current credit score.