When considering Virginia mortgage refinance, you are focusing on the Virginia refinance rates – what the interest rate, points and final monthly payment will be – after the Virginia mortgage refinance is complete. One good move to lower your payments can be to consolidate your first and second mortgages.

Refinancing Your First and Second Mortgages

Refinancing both your first and second mortgages will result in one low monthly payment that could save you thousands of dollars in interest charges. You qualify for lower rates by combining both mortgages, instead of refinancing separately. You can see substantial savings through your second mortgage refinance, which often has a several-percent-higher interest rate than your first mortgage rates. Not to mention considerable savings on application fees and other closing costs.

Lowering Your Mortgage Payments

You have a couple of options to lower your mortgage payment when refinancing. The first obvious task is to find a low rate mortgage. You will still see a savings in your monthly mortgage bills, even if you still select the same term of your loan.

The lowest payments come from adjustable rate and interest only loans at the beginning of your home loan. But a fixed rate loan can also give you quite reasonable rates with an assurance that those interest rates won’t rise in the future.

You can also extend your loan term in the case of a second mortgage which usually is for five to ten years. By consolidating your loans to a 30 year loan, you extended your payment schedule in order to have a smaller payment. However, it will be done with higher interest rate and charges for short term cases.

Getting the Best Loan

Once you determine the type of loan and terms you want, do your shopping for a good lender to save even more money. Lenders’ charges vary quite dramatically sometimes on how much they charge for closing costs and interest rates. The APR will show you how the loans compare overall, in terms of rates and closing costs.

If you are in Virginia, Delaware, Pennsylvania, Washington DC, Maryland, or Delaware, you want to shop around the mid-Atlantic area for mortgage brokers or lenders.

Many people, who need to refinance, are looking for a 15 year fixed or 30 year fixed rate mortgage.

But if you are planning to relocate or refinance again in the future, then be wary of paying high closing costs. Even if the mortgage broker or lender are able to secure you a lower rate, you can realize your savings only if you keep the mortgage for several years.

Don’t make your selection of which lender or mortgage broker to use, based on posted loan rates. Ask for a customized loan quote based on your general information. With more accurate numbers, you can make an informed choice as to who has the best financing for you.

With proper attention to interest rates, points, and closing costs, your Virginia mortgage refinance can go smoothly – consolidating your first and second mortgages.

Consolidate first and second mortgages