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Refinance the first mortgage

Posted on: 22nd Sep, 2011 11:39 pm
i have a simple query… say i have 2 mortgages – first and second. can i refinance the first mortgage independent of the second? any information is appreciated.
Hi Granolla,

If you have equity in your property, then you will be able to refinance the first mortgage independent of the first. However, you should note that the lenders will want you to have at least 20% equity in your property in order to refinance your existing loan.

Take care.
Posted on: 23rd Sep, 2011 01:46 am
you can refinance just the first as long as the second lien holder agrees to allow it.

sometimes the second mortgagee will agree and sometimes they will not.

they have their own guidelines as to what they will accept and not accept regarding the new first mortgage balance plus the second mortgage balance or line avaialble divided by the appraised value. the lower that %, the more likely they agree to suborinate their second mortgage to the new first mortgage.
Posted on: 27th Sep, 2011 12:33 pm
It can also make a difference if the mortgages are with the same lender or different ones. I suspect you'll have more luck if the loans are both with the same lender.

Of course if they are with the same lender it may be possible (and even a good idea) to look at refinancing them into a signle loan - this would save you in interest as the 2nd mortgage is undoubtedly at a higher rate.
Posted on: 20th Oct, 2011 04:10 pm
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