This entry was posted on Saturday, July 7th, 2007 at 2:25 pm and is filed under Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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July 7, 2007
Many of us who bought during the recent housing boom were forced to take second mortgages in order to keep PMI from occurring. Many of these were ARM, short term, or balloon mortgages that are quickly, if not already, jumping up to rather scary interest rates.
Taking control of a second mortgage and refinancing it to a set rate provides not only a few hundred dollars in savings each month, but also some financial security in being able to save or invest cash that you otherwise would be throwing at the second in order to pay it off quickly.
Credit unions like Pentagon Federal provide fixed rate lines of credit which can be used to pay down second mortgages at rates as low as 5.99%. Many of these lenders offer low/no closing costs options which can make getting the loan a no brainer.
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March 18th, 2008 at 6:52 pm
[…] Dealing with a second mortgage. Taking control of a second mortgage and refinancing it to a set rate provides not only a few hundred dollars in savings each month, but also some financial security in being able to save or invest cash that you otherwise would be … […]