The lender has assurance that the borrower isn’t pocketing any money or reducing the amount of equity they have in the property.
Combining mortgages allows the homeowner to pay a single, low-interest rate mortgage payment.
His unique combination of real estate investing and mortgage financing experience enables him to offer exceptional knowledge and service to his mortgage clients.
Combining first and second mortgages into one is an appealing option for many homeowners.
In this scenario, the 5 monthly payment has skyrocketed to 0 per month.
This is a common situation for borrowers with adjustable rate mortgages – the monthly obligations could rise even higher if the prime rate increases.
Combining two mortgages into one may provide a financial advantage to the homeowner as ownership interest value is built in the home.It’s also important to calculate your breakeven point.Refinancing, regardless of which product you use, costs money.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.
If you owe more than 80 percent between your mortgages, it may not be possible for you to combine your mortgages.