Mortgage Brokers More About Second Mortgage | Page 7

HOW TO COMBINE TWO
MORTGAGES INTO ONE
• Before starting out the process, make sure you do some homework. Your
first loan is the loan you borrowed to purchase your home, whereas, your
second loan is to pull out the cash for your other financing. The merging of
two loans may add your cost and reduce the amount of the new loan.
Another thing is refinancing your loan – this would adjust your interest
rate on your current loan. Lenders consider this as the safest option
because they would not be lending any extra money.
• The consolidation process may be hectic, as it would involve lots of
paperwork. The first step is to get in touch with two to three lenders who
can offer you some best deals. The process starts with examining your first
and second loan. Lenders will give you different options like waiving off
closing costs depending on how long you have been associated with the
bank. Remember, the paperwork is more lengthy and technical as
compared to the single mortgage.
• Find the lender who gives you best loan rates. Refinancing your loans may
cost you some money. The best thing to do is get quotes from different
lenders. Many lenders would visit your property and assess the value of
the house to determine the equity. They want to ensure that equity is
higher as compared to the two loans.