Consolidating first second mortgages
It’s important to be aware of this drawback before jumping into the refinance process.
The rate/term refinance (refi) will be important to weigh.
Are you considering refinancing to consolidate multiple mortgages?
With rates so low today, this can be a great way to reduce monthly payments and interest costs over the life of your loan, but unfortunately, it’s not always easy to accomplish.
It’s common for the fees to be recovered by the long-term savings, but only if you’ll be living in your home long enough to redeem the reward.
You’ll need to do the math to see if this is the case for your situation.
This loan is an adjustment on the interest rate and terms of your current loan.
I’ve worked with clients who were able to consolidate, but a subordination option ended up saving them significantly more money on a monthly basis and over the long term.
Some lenders like Sun Trust will waive closing costs on refinancing if you’ve been a customer with them for three or more years.