Before Jumping Into The Consolidation Process Understand Your Situation
Have you done a cash-out loan with your second mortgage? If this is the case, the new loan you refinance for ount for which you qualify may be reduced. Its important to be aware of this drawback before jumping into the refinance process.
The rate/term refinance will be important to weigh. This loan is an adjustment on the interest rate and terms of your current loan. In most mortgage consolidations, this loan is considered safer. The lender has assurance that the borrower isnt pocketing any money or reducing the amount of equity they have in the property.
Drawbacks To Refinancing A Home Equity Loan
Refinancing your home equity loan isnt without fault. For one, youre putting your house on the line and thats always a risk you shouldnt take lightly.
When Is Refinancing Your Mortgage Not A Good Idea
As attractive as refinancing your mortgage may seem, its not the right answer for everyone. Here are a few reasons why refinancing may not be the right move:
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