Let’s say you already have your first mortgage from when you purchased your home, and maybe you took a second mortgage which could be either a home equity line of credit or a fixed rate second mortgage.
In case you are thinking of paying for both mortgages, you may want to know that the costs for such a combined repayment can get a little steep. It is a simple process which should be thought of as a first mortgage refinance.
When the mortgage closing time comes, the title company that handles your transactions is going to order a payoff from your existing first mortgage and from the current second mortgage on your home because they will want to get the amount for paying off the two loans combined.
It is just like taking a new mortgage without a second, with the same process involved such as qualifying for the loan, new appraisals which are followed by new payoffs on the loan which are the two mortgage payments combined into one, and it usually ends up in a payment savings and a better overall rate than what the rate may be between the two loans individually.
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