I brought my home 1yr ago, I want to refinance, my mortgage was setup with a 1st and 2nd mortgage?

Total I brought the house for 87000 and I owe about 85000 total between the two mortgages. First mortgage has an itnerest rate of 9.5% and the 2nd is about 12%. Is this a good time to refinance. In total I am paying between 750-800 a month (not including taxes or homeowners insurance) should I refinance.

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  • Anonymous
    1 decade ago
    Favorite Answer

    you'd have to borrow at least 85000.00 as that is your total as you would have to pay other two liens off

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  • Anonymous
    1 decade ago

    I disagree with the previous answer that says you can't get competent advice from Yahoo answers. Here is some competent advice:

    Both of the rates you are paying are high. I'm guessing you bought the home about 2 years ago, judging by the amount you've paid down on the mortgage. Rates back then were much lower, and you were probably overcharged if you're paying 9.5% and 12%.

    Depending on whether there's a pre-payment penalty or not, it may make A LOT of sense to refinance now. Has the property gone up in value? If so, you may have more equity, and you can probably combine the two payments into one.

    You'll probably need to contact a competent mortgage broker in your area (not a bank)...they should be able to get you a good loan.

    Source(s): I am a mortgage consultant.
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  • 1 decade ago

    I don't believe you can get competent, informed advice from Yahoo like this. You have a very good question and at least here in California, the interest rates have been going down for the last one month.

    It may make sense for you to refinance, and it also may not make sense. The smart thing to do is consult with your mortgage broker or lender so they can review specifically 'your' situation and give you the best advice. The overall situation for each borrower can be very different, even though it seems on paper to be the same. You need to approach your decision making from a very personalized standpoint.

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  • 1 decade ago

    You wan to refinance. Make sure you can refinance at this short time. Read both mortgages, they can impose some penalties if the morgaged property is refinaced in so short time. Make sure you have some equity (market value of the property less the balance of the two morgages). Financial institutions do not typically give 100% loan to value when refinancing. How your property have increased in value in one year? Is this increase in value sufficient to refinance the current debt on the property at a lower rate? Make sure that, if you can refinance and have equity, the interest is lower than the one you have right now. Remember, that refinancing is cancelling one loan and making another loan and there are some closing costs that you have to pay. Make sure you have money for these cost unless you want to mortgage the closing costs.

    Refinancing takes many aspects to evaluate: interest rates, loan to value, closing costs, market value of the property, amount of existing morgages, credit score, credit history, your current income and expenses, additional debts after you bought the property, etc.

    I suggest you to call the financial institution that you trust an explain to them your goals and your current situation. They are better qualified to inform you and help you determine a course of action to refinance your property.

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  • 1 decade ago

    People People....If you got a rate for 9.5% last year, that means you arent going to qualify for anythin gspecial now...

    It may though be beneficail to eliminate the 2nd mortgage by rolling them together into one...

    Im just letting you know to disregard the people talking about 7% rates...Unless your credit has doubled, then it will be very hard...

    Yhey are correct to say though that you need to speak with a professional loan officer and go from there...

    My name is Jason Fry, i am a licensed mortgage originator from Providential Bancorp.. We are a mortgage lender serving most of the US...

    Feel free to call me at 312-264-6448, or email me at jasonf@providnetial.com..

    Good luck

    Jason Fry

    Licensed Mortgage Consultant

    Providential Bancorp

    312-264-6448

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  • 1 decade ago

    Here in hawaii, the rate can go as low as 1% depending on your credit score. If you had a credit score of 620 or more, you will qualify for this rate. For example, your first mortgage will be at a rate of 1%, and the second mortgage could be at any rate, possibly 8%, but this is better than what you have.

    Source(s): Training to be a loan officer
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  • 1 decade ago

    Refinancing seems to be a good idea for you. Your mortgage payments will be manageable. It is also a good way to get rid of the Private Mortgage Insurance you have to pay for, but your home needs to appraise for the right amount of money. Call your local bank, lending institution or credit union.

    Source(s): Steve Morbitzer Ned Merkle & Co. Realtors stevemorbitzer@yahoo.com
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  • 1 decade ago

    the best thing you can do is to consolidate your two loans meaning, the interest rates of the two loans have to be combined into one. 9.5% + 12% = 21.5%

    If you would consider my company we offer consolidation of two loans and come up with a better interest rate which is half of the total interest rate of your 2 loans combined that is 10.75%. so instead of paying 21.5% monthly now you'll gonna be paying 10.75% which means lower interest rate, lower monthly payments. e-mail me if you are interested and we can do a customize proposal for you, it's free. One thing, if you have a big FICO score 720 and above, 100% chance you'll get a very low interest rate when your two loans are consolidated. thank you..

    clifford here.. you can e-mail me your # so we can talk on phone and talk about all your queries. honestly, we can give you 10.5% interest rate for your 2 loans. godbless!

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  • ruthie
    Lv 6
    1 decade ago

    Absolutely, if you have good credit you can get a loan for about 7 % right now. That will save you lots of money in the long run. Call several banks and talk to them. then decide which is the better deal.

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  • bianca
    Lv 4
    1 decade ago

    your rate is kind of high for the mortgage you got one year ago.

    i don't know what state are you from, but it will not hurt to ask your loan officer if refinancing is the option for you. if you combine 1st and 2nd mortgage your payment will be lower, but of course there is a lot of factors to consider and the best way is to talk with specialist.

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  • 1 decade ago

    depinding on your credit score. if it is in the low 600's you may not get a decent interest rate. if it higher than 750 you might be able to get prime , which is around 6.25% but your best bet is to come up with 20 % so you wont have a secong mortage.

    Source(s): husband is a realtor
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