Consolidating 1st and 2nd Mortgages
In the past you may have taken out a second mortgage to pay off your debt or make a large purchase, in doing so it’s likely your monthly payments have doubled, or you are paying interest only on that second mortgage. Now you want to decrease the amount you pay each month or you could just be looking for better terms, and to accomplish that you need to consolidate your mortgages.
How to Consolidate your Mortgages?
To consolidate your first and second mortgages at a lower interest rate, you’ll first need to seek the help of your mortgage broker. They’ll start by:
• Examining the loan terms you have on your current mortgages
• Getting in touch with your current lender to help them determine the costs of refinancing to ensure that no costs are omitted and all are accounted for during their calculations
• Scheduling a home appraisal
• Determining additional costs and fees for prepayment of your current loan
• Housing market research will also be used to determine your home’s equity, since there must be enough equity available to pay off your second mortgage when consolidating both mortgages
• Conducting a loan rate and fee comparison, among a variety of lenders
The Benefits of Combining Your First and Second Mortgages
The major benefit to combining your two existing mortgages is saving money. On top of that there are a number of other benefits that come along with this decision, including:
• Lowering your monthly payments
• Securing a fixed rate mortgage with a lower interest rate
• Shortening the life of your loan
• Eliminate a large amount of interest payments
Although there will be costs to consolidate your mortgages, you can expect to recover them through the life of your new loan. We are sure you have many questions if you’re considering this type of refinancing. We have the knowledge and experience to answer them and put your mind at ease.
Call me today to book an appointment to discuss your options.
Meghan Van Houten – Mortgage Agent
416-709-9062
meghan@mountainviewmortgage.ca
Mountainview Mortgages
5038 Fairview Street, Burlington, ON L7L 0B4
Independently owned and operated
Lic# 12568
