Mortgage Loan Refinance Pasadena California

Pasadena-California. Refinancing combining the first mortgage with second mortgage

Pasadena-California mortgage borrowers at the time of purchase are squeezed out on down payment. Besides mortgage borrowers like the idea of having cash in wallet instead of using all their resources to buy a home. Whether you are married and expecting a child or have other obligations for which you would like to have cash in hand instead of using it all.As such at the time of purchase most borrowers go for two mortgages at the same time on the house. It’s called first and second mortgage.The second mortgage could be with the same bank or some other bank. This second mortgage is called Purchase money first. Meaning the mortgage was taken at the time of purchase.

Borrowers end up paying higher rate of interest on the second mortgage because the second carries a second line with the bank. Second lien means more risk and attracts higher rates.Pasadena-California mortgage borrowers looking to combine the first with the second mortgage need to understand a few things.This combining of the first with the second mortgage as long as the second was taken at the time of the purchase can be effectively combined so that there is just one single loan and one rate.

There are several reasons for doing so. Sometimes borrower doesn’t like to make payments to two separate banks on separate days. They would prefer to have just one bank and one mortgage.This combing the first with the second is a rate and term refinance not cash out refinance. Only as long as the second was taken at the time of purchase. Should the second be taken at any later date. Combing with the first would make it cash out mortgage.

The reason why I am stressing this is because as long as its rate and term your will get a lower rate but if it’s a cash out combining the first and second the rate would be slightly higher than rate and term by its very nature of being classified as cash out refinance.Pasadena-California mortgage borrowers looking for lowest rate on refinance should speak to Freemont-California mortgage expert.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com .

Article by Roger Shanker