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Rates are down today. Today’s rates with no lender fees are 3.375% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)

Got a second? A second mortgage that is. Well, if you do and your looking to refinance you should be aware of a few things before you move forward with your refinance.
Check it out in today’s video:

The first thing you should consider is if you have enough equity in your house to include it in your new refinance. If you do and want to go this route be aware that your loan would then change to a Cash out refinance and it will change your rates and costs associated with your loan.
The only exception to the cash-out rule is if you took the second mortgage out at the time of purchasing the property. That would be considered a purchase money second. If you pay this off and have not taken any recent draws on this, your loan would remain as a rate and term refinance.
But, let’s assume you want to keep our second mortgage in tact and simply subordinate it. Ha! Nothing is simple when it comes to mortgages.
When you subordinate a second, you will have to contact the lender that holds that second mortgage and go through the subordination process. This can take a week or 2 months. It really depends on your lender.
There is one main guideline you need to be aware of. The second mortgage can not balloon – that’s calling the note due in full – in the first 5 years of your new first mortgage. This little guideline catches people all the time. If your second has a balloon on it , pay close attention to the date. It might save you from a mortgage headache.
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Let’s change the way people shop for a mortgage…forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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