How to Refinance a First Mortgage & Pay Down a Second
How to Refinance a First Mortgage & Pay Down a Second During a refinance transaction, you may be able to obtain a first mortgage that enables you to pay down your second mortgage at the same time. Sufficient equity in your home will be required to refinance your existing first mortgage and to facilitate the funds toward paying down your second mortgage. Your loan officer will determine the amount that you're qualified to borrow. The maximum loan amount will be based on your income and the equity within your home. 1) Order your consumer credit report. View the loan payment history for your first and second mortgages, as well as for your other revolving and installment accounts. Timely payments on your mortgages and other debts could increase your ability to receive favorable refinancing terms. Report discrepancies or disputes to the respective credit bureaus. Ensuring the accuracy of your credit history could position you to obtain more attractive loan terms. 2) ...