In this way, you could potentially merge two mortgages for the one to, effectively cutting down on your own rate of interest and you will overall appeal reduced

If you can prove your utilized the full next home loan to purchase your household, this will maybe not amount as the an earnings-out refinance. It means you may enjoy straight down cost. You may need adequate guarantee of your property to repay the next home loan after you re-finance; although not, having home values rising rapidly nationwide, of a lot residents is actually building security less than just they expected.

Your next option is to refinance precisely the no. 1 home loan, making next lien (the newest piggyback loan) unaltered. Read more