Refinance Second Mortgage
Mortgage Loan Outlet is the best place online to refinance your home equity or refinance your second mortgage. We know it's difficult to get started when refinancing a 2nd mortgage, but we make it easy to get started. Our up to date resources and professional lenders offer you the security of knowing you will receive superior service. Just a few years ago, nearly 25% of all home finance transactions were 2nd mortgage refinance loans.
At Mortgage Loan Outlet.com our network lenders offer competitive home equity rates to find you the best home equity options. Refinancing 2nd mortgage and can be a discouraging process, but we make it easy by providing many lenders through one simple application process. MLO can save you time and money by supplying you with the resources to refinance a second mortgage or refinance your home equity.
Select the second mortgage type below and fill out your loan requirements. Once processed, we'll have a lender call you as soon as possible with competitive rates.
|Fixed Rate 2nd Mortgage Loans for Home Remodeling
Refinance your mortgage loans and reduce your monthly payments with fixed rate 2nd mortgage loans.
- Home Equity Refinancing
- 100% Debt Consolidation
- Refinance 2nd Mortgages
- Cash Out Remodeling
- 2nd Mortgage Refinancing
|Home Remodeling Spending Rises
After posting quarterly gains of as much as 20% in 2004 and 2005, remodeling expenditures rose only 1.5 % to $168.7 billion in the last three months of 2006, reports the Joint Center for Housing Studies at Harvard.
According to Wall Street Journal, The return on investment for certain home improvement projects also declined last year. According to Hanley-Wood's Cost vs. Value survey, home owners recouped only 77% of a $38,000 bathroom remodel in 2006, compared with 93% the prior year.
Home manufacturers are responding to lowered home improvement budgets by releasing more cost effective products with an upscale appearance. Borrowers have been taking out 2nd mortgages to help fund the remodeling of their homes.
Formica Corp., for instance, displayed more than two dozen laminate countertops with the appearance of wood and river rocks, among others, at the recent International Builders Show in Orlando, Fla. Other manufacturers are catering to do-it-yourselfers.
Second Mortgage FYI
Reasons to refinance?
Let us count the ways
With the rise in mortgage rates, the refinancing bandwagon has almost disappeared
over the horizon. Fewer people are applying for home loans, a factor that strengthens
the hands of consumers, but could make some lenders desperate.
In mid-March, the average rate on a 30-year fixed mortgage was 3.41 percent. That rate has gone up almost a full percentage point in the two-and-a-half months since. Business has slowed: The number of mortgage applications filed in the last week of May was down 56 percent from the same week a year earlier, according to the Mortgage Bankers Association. Barely a third of mortgage applications were for refinancing. Lenders are hungry for business.
"As (rates) have gone up in the past, we see that lenders definitely get
more competitive," says Brian Regan, vice president and chief consumer
officer for Lending Tree. "A lot of the fees, a lot of the actual discount
and origination fees, are where lenders are getting more competitive now."
Lending Tree uses a model in which consumers fill out a loan query telling how much they want to borrow plus other details. The information is sent to multiple lenders, which have the option of offering loans. Regan says that during the last two-and-a-half months, when long-term mortgage rates have risen almost a percentage point, Lending Tree's banks have loosened up a bit, making offers on some applications that they previously would have passed up.
Lenders are charging less to offer "lock and float" deals, Regan
says, in which the borrower locks a rate -- meaning it can't go higher if the
loan closes by a deadline -- but has one chance to seize a lower rate in the
Most lenders don't charge a fee to lock a rate for up to 30 days, but it often
costs something to lock longer than that. Regan says some lenders are offering
to lock up to 45 days free. But Brian Peart, president of mortgage broker Nexus
Financial Group, says longer lock periods could be a sign that lenders are falling
behind in loan processing.
"What you've got now is a very competitive environment where everyone's
squabbling over a much smaller pie," Peart says. With the waning of the
boom, he explains, demand for loans has fallen about 60 percent from a year
ago, and "lenders are fighting like seagulls over the scraps."
Just as you wouldn't entrust your lunch to hungry seagulls, you shouldn't accept
too-good-to-be-true deals from mortgage
lenders. "Be careful, because people will lie," Peart says. "They
just will. The company you make an application with this month that quoted you
a rate that was much better than anyone else's probably won't be able to close
on that loan. As good as it is competition-wise, customers have to be careful.
Some companies are fighting for their lives."
A Bankrate reader recently complained that one of the country's largest mortgage
banks sprung a surprise on closing day. The borrower was examining the paperwork
and discovered that the starting rate on his home equity line of credit had
been raised to 6.125 percent instead of the agreed-upon 4 percent. He called
the mortgage consultant, who, "said that they've been so busy, which is
why they failed to communicate the change to me. Their apology was feeble at
It takes less time and expense for a lender to refinance
a mortgage than to underwrite a purchase loan, so banks are pushing hard to
find customers who are refinancing their loans. One of the challenges is finding
people who could benefit from refinancing. There are a few reasons to refi,
Peart says one set of potential refinancers consists of people who had terrible
credit a few years ago -- maybe they almost lost their homes to foreclosure
-- and who used "hard money" lenders for their home loans. Most hard
money lenders are individuals. They front money at high rates to people with
bad credit but plenty of equity in their homes. A typical hard money loan is
a one- or two-year stopgap that gives the owner time to sell the house or rebuild
a good credit history so the mortgage can be refinanced.
Other homeowners refinance their home loans so they can consolidate credit
card and other debts into a lower-rate, tax-deductible mortgage.
Regan says rapidly rising home values might prevent some borrowers from moving
up when they feel that they have outgrown their homes. They reason, "We'll
stick around and make some improvements," Regan says, and they pay for
those renovations by refinancing their mortgages for more than the loan's current
balance, taking out the difference in cash.
A final group of potential refinancing
customers are homeowners who have 30-year, fixed-rate loans, and they know that
they will sell their homes and move within three or four years. They could benefit
by refinancing into hybrid adjustable-rate mortgages -- loans that start out
with a low interest rate that lasts for three or five years, and then adjusts
Benefits of Second Mortgage Refinance
- No Equity required
- Don't need to touch your existing Low Rate 1st mortgage
- Tax Deductible
- Consolidating Debts will Lower your Monthly Payments
- 125% Mortgage with HARP
- 1st Time Homebuyers OK
- Poor Credit OK
- No Verification Income Loans
- Self Employed Borrowers OK
- Interest Only Loan Options
- Home Equity Lines of Credit
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