It is possible to refinance first and second mortgages, combining them into one. Approval is contingent on the age of the second and how much equity is in the home. Refinancing to combine first and second mortgages is often a great way to reduce payments.

Can you negotiate your second mortgage?

When your home is worth less than you owe, the second mortgage is actually treated as an unsecured debt. It is possible to negotiate a second mortgage payoff for pennies on the dollar, just as with credit cards and other unsecured debt.

What to do with a second mortgage when refinancing?

Pay off and close the second mortgage with your own assets. Pay off and close the second mortgage with the refinance. Restructure the mortgages with a simultaneous new first and new second mortgage. (Yes, piggy back second mortgages have returned). Request the second mortgage subordinate their lien position with the new first mortgage.

What kind of loan do I need to refinance my house?

Refinance Home Equity Loans Home Equity Line of Credit Reverse Mortgage FHA Loans VA Loans Cash Out Refinance Resources Current Mortgage Rates How does a mortgage work? How much should you put down on a house? Minimum mortgage requirements for 2021

When does it make sense to refinance your mortgage?

For instance, if you need to lower your monthly payment by $100 to afford your monthly expenses, and you can get that done with a refinance, it probably makes sense. But if you’re trying to reduce your overall mortgage expense, and refinancing adds to that cost, you should probably pass. Refinance or pay off? Use a calculator to decide

Is it better to replace your second mortgage with a first mortgage?

Ideally, you replace your first and second mortgage with a new first mortgage when you refinance. That generally gets you the lowest mortgage rates. But you might not always want or be able to do that. For example: Your home equity loan or line of credit (HELOC) might have an ugly prepayment penalty.