How to Refinance a Second Mortgage

If you have a second mortgage and want to refinance into into a new mortgage with a lower interest rate and better terms. BD Nationwide will assist you in your quest to shop lenders offering refinance loans, second mortgage, FHA loan refinancing, loan modifications and fixed rate mortgages for cash out or consolidation with fixed payment financing.

You can a refinance a second mortgage into a fixed rate home equity loan, revolving home equity lines or refinance it into a new first mortgage.

Refinance and select a fixed rate 2nd mortgage, variable equity line of credit or a 30-year fixed rate 1st mortgage. Don’t let the refinance era of low interest rate mortgages pass you by! You still have time to lock in a great rate on a refinance mortgage that potentially saves you hundreds or thousands of dollars.

You can finally access the cash to help make your financial dreams a reality! Also consider applying for a FHA refinancing and enjoy the lower monthly payments and reduced interest rate.

Compare Lenders to Refinance to 2nd Mortgage Loans and Home Equity Credit Lines

Getting a mortgage refinance loan offers you the opportunity to turn your variable rate credit line into a fixed rate equity loan with fixed mortgage terms. This can save you thousands of dollars a year in interest when you refinance and get cash out with a FHA mortgage that allows you to borrow up to 95% loan to value.

How Much Do You Want to Borrow?


See Lenders for Terms and Conditions

Interest rates could rise any day, so there’s no time to waste! Consolidate all of those high-interest credit cards that never seem to end. You can even make home improvements that could add value and beauty to your home!
  • Refinance and Lock into a Fixed Rate Mortgage
  • Fixed Rate Second Mortgage Refinance
  • Loans for Bill Consolidation and Lower Payments
  • Pay off Variable Rate HELOC with Fixed Interest Rates
  • Low Interest Rate Mortgage Refinance
  • Sub-Prime 2nd Mortgage Refinancing
  • Cash Out with FHA Mortgage Refinances
  • Non Conforming Mortgages

Refinancing a second mortgage presents more challenges compared to a standard refinance due to the increased risk borne by the lender. In the event you decide to sell your home or are unable to make the payments leading to a foreclosure, the 2nd lender receives proceeds only after settling the first mortgage. Consequently, the market for second mortgage lenders is narrower, resulting in fewer alternatives for borrowers.

Nonetheless, individuals with solid credit, stable income, and consistent payment records typically have access to refinance options for a second mortgage or equity line of credit. It’s advisable to shop around and compare interest rates, including consulting with the current lender who might extend refinancing offers. While sticking with the current lender could entail savings on fees and select closing costs, it’s essential to weigh all available options as the best interest rate might not necessarily come from the existing lending company or bank.

Consolidate Your Debt and Save Money with Lower Monthly Payments from a Fixed Rate Second Mortgage

A second mortgage refinance could be the home financing solution to ease those financial anxieties. Take a breath, and call Nationwide to talk with an experienced loan professional about refinancing or restructuring your 1st and 2nd mortgage with a loan modification today.
* This is a sample of refinanced credit debt to and assumes interest rate for the second mortgage at 9.5%.
Apply Now and find out how much you can save!
  • 100% Refinancing – for Fixed Rate 1st Mortgage Loans
  • Interest Only Payments with Mortgage Refinance Loans
  • Consolidate Debt with 1st Mortgages
  • Refinance Adjustable Rate Loans with Fixed Rate
  • Low Rate Home Mortgage Refinance to 100% LTV
  • Sub-Prime Home Equity Refinancing
  • No- PMI (Private Mortgage Insurance)
  • Save Money with Fixed Rate Home Equity Loans
  • Refinance Your ARM Now!

Should I Get a Refinance Loan With a Fixed or Adjustable Rate?

Home equity can be converted into money through one of several different instruments. If you have an adjustable rate home-equity line of credit, that is rising, we suggest refinancing into into a fixed rate first or second mortgage. The chore is to find out which one loan is right for your situation.

Refinance Your Second Mortgage Behind the ARM Home Loan

Nationwide unveiled a second mortgage loan that has the capability to subordinate up to 100% behind a negative amortization first mortgage. This innovative home equity feature provides an opportunity for numerous homeowners who have encountered challenges in securing a second mortgage or home equity loan that aligns with a first mortgage featuring negative amortization.

Refinance or Second Mortgage?

Combining first and second mortgages into one loan can be challenging, but sometimes it makes sense financially as well as being practical. In my borrower’s case, the best option was to leave his first mortgage alone, and simply refinance his 125% home equity loan with a 95 or 100% second mortgage to lower his monthly payments.
If you have reached the limit with your revolving equity line of credit it’s time for a refinance. Verify with your loan officer that your rate is locked with a fixed rate refinance. Fixing the rate with a fixed term will keep your monthly payment steady for the duration of the loan.

Is it possible to Refinance my 1st Mortgage only without Refinancing the Second Mortgage?

2nd mortgage refinance
Yes, it is possible to leave the 2nd mortgage alone and just refinance the existing first mortgage.
The only catch is that the second mortgage lender must approve a subordination agreement.
Unfortunately many lenders in second position drag their feet when it comes to subordination agreements.
Even if they do allow the second loan to be subordinated, they will require you to meet a certain criteria, like loan to value, and mortgage payment history.
Think about it, why would a lender who could potentially be elevated to first position want to subordinate? Mortgage companies are not required to subordinate loans, so if you want to subordinate an existing second, be prepared for a fight and follow the lender’s process for subordination approval.

Learn more about Second Mortgage Refinancing

Second Mortgage Refinance: This is the process of revising your existing second mortgage, usually with the aim of saving money by reducing the interest rate or accessing additional cash. Many individuals opt for this loan to convert their current variable rate mortgage into a fixed-rate second mortgage with a consistent monthly payment, potentially saving thousands of dollars over the loan term.

The Combined Loan To Value: (CLTV) is a crucial metric that assesses the total balances of the loans secured to the home in relation to the appraised value. To calculate CLTV, add up the balances of the 1st and 2nd mortgages, then divide the sum by the appraised value of the home. For instance, if the first mortgage is $150,000 and the proposed second mortgage is $45,000, the combined total is $195,000. With a home appraised at $200,000, the Combined Loan to Value is 97.5%.

Interest-Only Mortgage: These loans enable borrowers to make reduced monthly payments, covering only the interest portion. No part of the interest-only payment contributes to paying off the principal unless additional funds are added. Interest-only periods typically last for the first 10 years or the draw period for most loan programs. The interest-only mortgage gained popularity with rising property values, making minimum mortgage payments more affordable for homes that might otherwise be too expensive.

Debt-to-Income Ratio (DTI): DTI is determined by dividing your total monthly payments (mortgage, credit cards, loans, etc.) by your gross monthly income before taxes. It is a critical factor considered during the loan underwriting process for approval.

BD Nationwide wants to make your mortgage refinance experience online a positive one that benefits your finances. Our experienced staff can help you shop lenders and brokers in a quest to find the lowest possible rate with a refinance or 2nd mortgage that works your payment into your budget.