If you’re considering taking out a 2nd mortgage on your home you might want to reconsider. Mortgage refinancing could be a much safer option with today’s mortgage refinance rates at near historical lows. According to this article in the Wall Street Journal you’re putting yourself at risk of being underwater in your home loan if you take out that 2nd mortgage loan:
Almost 40% of homeowners who took out second mortgages—extracting cash from their residences to cover everything from vacations to medical bills—are underwater on their loans, more than twice the rate of owners who didn’t take out such loans.
If you decide to go forward with your mortgage refi you’ll want to pay close attention to what you’re paying for loan origination and closing costs. There’s more to getting a good deal on your mortgage refinance than just getting low-interest rates. Before you’ll get any benefit from your lenders best refinance rates you’ll have to recoup your closing costs and fees.
The more you pay for the loan origination fee and closing costs the longer it will take to break even. The less you pay at closing the better. You can learn more about getting the lowest refinance rates without paying unnecessary markup or junk fees by checking out my free Underground Mortgage Videos.