ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How To Refinance a Second Mortgage

Updated on August 24, 2015

Times have been pretty tough the world over. While a lot of attention is being paid to what’s going on in the US, with the recession, the bailouts, corporate over spending and on and on, a lot of people seem to be forgetting that, when one of the biggest economies in the world is having trouble, the rest of the world is going to get the ripple effect from it. Whether you live in the US, the United Kingdom, or somewhere in China, you need to take a moment to sit down and seriously consider your options.

In doing so, you might want to list “refinance second mortgage” among them. A second mortgage home loan can be a real life saver for some families, but you have to choose wisely when you take advantage of 2nd mortgages, and you have to seriously consider why you want to consider the whole “refinance second mortgage” option. If you want to refinance second mortgage, it can be incredibly helpful, but that doesn’t mean you should jump into refinancing second mortgages without knowing what you’re doing.

What You Stand To Gain From a Refinance Second Mortgage

Consider what you stand to gain from refinancing your second mortgage and, hopefully, getting a better deal on your second mortgage home loan.

  • Getting rid of private mortgage insurance, as this can really be kind of pricy and not always necessary
  • Getting a better second mortgage rate on your interest
  • Lowering your monthly payments for your second mortgage rate
  • Combining your first and 2nd mortgages into one monthly payment
  • Changing the current terms on your second mortgage home loan and trading them in for a better deal.

Any one of these options should be reason enough. It depends on your personal needs and your situation, and you know them better than anyone, so make the decision for yourself after careful consideration.

Refinance A Second Mortgage Step 1 - Check Your Calculations

Now, the first step to second mortgage refinancing is to go find one of those mortgage calculators to double check and make sure that taking out a second mortgage actually will help you out in the long run.

Step 2 - Your Credit Report

Next, before making any actual steps in Operation: Refinance Second Mortgage you’ll want to take a look at your credit report (there are plenty of services available online for this). You want to make sure you’re in good financial standing. If you see any mistakes on your credit report, dispute them right away. Make sure to settle any debts, and get your credit looking nice and clean, as this can really give you the upper hand in a second mortgage refinancing negotiation.

Step 3 - Find A Lender

After that, you’ll want to find a second mortgage lender, and before actually signing anything, you’ll want to see what they have to offer you. Make a note of what the second mortgage lender has to say regarding loan terms, getting a good second mortgage rate, and lending fees. Remember, 2nd mortgages and second mortgage refinancing are supposed to help you out of financial trouble, not dig you a bit deeper.

Step 4 - Fine Tune Questions And Costs

Now, look over all of your loan paperwork and figure out exactly how much money you’ll need for your second mortgage home loan closing costs. Hopefully the answer will be zero. That’s not always what you can expect, but you may just luck out and wind up paying nothing for closing costs. At this point, you’ll also want to ask any lingering questions you might have for your potential lender or lenders.

Step 5 - Final Checks Before You Refinance Second Mortgage

And finally, take a good, hard look at everything. Make absolutely sure you’re making the right decision, make sure that the terms are agreeable, make sure you’ll actually be able to make the payments on time, and know what will happen if you wind up being unable to make the payments. Now, if you’re satisfied with what you have before you, go ahead and sign. If not, keep trying to get a better deal until you are satisfied.

Some Quick Tips to Refinance Second Mortgages

Now, before doing anything about your second mortgage home loan, you may want to keep a few simple tips in mind.

  • For starters, try to negotiate with your second mortgage lender wherever and whenever possible. The fact is that they do want your business, so they should be willing to meet you halfway. It may be possible to negotiate a deal where appraisal and title fees are waived. 2nd mortgages are no small thing, so try to work out what’s best for you before committing to anything.
  • This one goes without saying, of course, but try to get the lowest second mortgage rate you can find for interest, this should be a pretty high priority. The more interest you’re paying, the higher your monthly payments. And besides, it’s simply better to have a low interest rate anyways, right?
  • Whatever you do, don’t just accept the first loan offer you get from a second mortgage lender. No matter how great the new second mortgage rate sounds, it’s always worth the extra bit of effort to shop around and make sure that what you’re getting is going to actually be the great deal the second mortgage lender is talking it up to be. You may be pleasantly surprised to find that the first second mortgage rate offered really was the best available, but you won’t know until you’ve done a little comparison shopping. And no, this won’t hurt the second mortgage lender’s feelings in the least!

Be Careful!

Make this decision very carefully. As helpful as a second mortgage refinancing can be, 2nd mortgages are also a very serious responsibility. There’s always a chance that the deal you have now is basically perfect for you, so don’t think that you absolutely have to consider second mortgage refinancing, just know that it is an option, and it’s there for you if you need it, if your current second mortgage rate isn’t doing you any favours, and if you really do need to do something about it.

This hub brought to you...

by Julie-Ann Amos, professional writer, and owner of international writing agency

Why not create your own HubPages? It's fun and you can make revenue from Adsense and other revenue streams on your pages. JOIN HUBPAGES NOW

This work is licenced under the Creative Commons Attribution-Non-Commercial-No Derivative Works 3.0 Unported License. To view a copy of this licence, visit or send a letter to CreativeCommons, 171 Second Street, Suite 300, San Francisco, California94105, USA.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)