How Do You Refinance A Second Home Mortgage?
Refinancing a second mortgage is similar to refinancing a first, or primary, mortgage. However, there is a significant difference in closing costs. In most cases, if the borrower leaves the new, second mortgage in place for a full three years, closing costs are waived. With a first mortgage, the borrower may pay between 3 percent and 6 percent of the loan amount in closing costs, according to the Federal Reserve. Shop for three quotes on a second-mortgage refinance to secure the lowest interest rate. Consider getting one of the three quotes from your existing lender. While most lenders waive closing costs for a second-mortgage refinance, some may not. Your current lender, however, should be willing to match a competitive interest rate and waive any closing costs to keep your business. Rate shopping can be done online through most major banks. Fill out a Universal Residential Loan Application with a lender. Include two months of pay stubs, two months of bank statements (all pages) and t
