Can we refinance our second mortgage?

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We bought a house last year with two mortgages. Because we only put down 10% for the loan, having the second mortgage of 10% of the loan, this way we don’t have to pay for the insurance. This second mortgage has an interest rate of 9.75% while our other mortgage is at 6%. We want to refinance this second mortgage to a lower rate. Can we do that? Is there anything that preventing us from refinance just this second mortgage? There is no early payment (repayment) penalty on both of our mortgages. Thank you very much for your help.

  1. Reply
    January 26, 2011 at 5:49 pm

    most likely you wont be able to just do the second you will have to do the first as well combining them together. You should have done better research though. If you have good credit and a good history of paying on time then you could have been elidgable for programs that have no PMI up to 90%. My company has these if you are interested email me.

  2. Reply
    sara sentor
    January 26, 2011 at 6:03 pm

    Oh sure, you have the chance of refinancing your second mortgage. Second mortgage as you know is a secured loan on the property of the borrower. So, if you are in urgent requirement of some cash or want to minimize your monthly payments, second mortgage refinance is a great option for you. Refinancing on second mortgage is very quick and simple. Besides enjoying the lower rate of interest, you get flexibility in repayment as well.

    Log into: and learn
    all the basis and insight into mortgage refinancing.

  3. Reply
    Tony D
    January 26, 2011 at 6:06 pm

    2nd mortgage refinance loans exist, they are just harder to get these days. As a mortgage broker, I am still doing them but the rates are not as competitive as a few years ago – fewer companies buying them and higher risks involved. Let me know what state you are located in and I will refer you to a lender or two that offer these loans. Then you check and decide if it’s worth it.

  4. Reply
    Erik B
    January 26, 2011 at 6:36 pm

    Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $ 1500 towards their rent or mortgage. It’s available in most areas, so I think you should check it out.

    Hope this helps!

  5. Reply
    January 26, 2011 at 6:52 pm

    It depends on the following:

    1.How are property prices holding up in your area?
    2.How strong is your credit profile now?
    3.Are you willing and able to verify your income and/or assets?

    Something that you need to be wary of are the modifications recently done to the Loan Level Pricing Adjustments made by Fannie Mae and Freedie Mac. Basically these are premiums that lenders are forced to assess onto interest rates depending on how risky a loan is. For instance, the rate of a 95% loan on an investment property will be significantly higher than the rate of an 80% loan on your own home because of the pricing adjustments assessed on rates on investment properties and loans above 80% due to the greater risk they represent to lenders.

    Even more imperative is the need to make a decision that is inline with your long term financial plans. This means that any new financing you obtain should take into account your children’s 529 college savings plan (if applicable), any major expenses you’re contemplating in the immediate future (a new car, the purchase of a second home, the birth of a child, etc., etc.), your present investment strategy, your insurance needs and obligations or other important financial plans that can be complicated or even derailed if you make the wrong decision about your mortgage financing now.

    If you’re looking for a comprehensive solution to your financing needs feel free to contact me at We are licensed in all 50 states and specialize in TAX FREE mortgages in the state of New York.

    Best Regards,

    J. Polanco
    Financing Advisor
    Robbins and Lloyd Mortgage Corp.
    347 5th Avenue, Suite 1506
    New York, New York 10016

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