Consolidating first second mortgage loans
Imagine how much easier refinancing your loans like this would be!Do you want to avoid falling into this trap again and find out how to pay your mortgage off quicker? With the range of Home Loan & Mortgage lenders in New Zealand diminishing significantly with GE Money, Wizard Home Loans, United Home loans, Tasman Mortgages, Freedom Home Loans, Bluestone Mortgages, Property Finance Securities & Pioneer Mortgages now ceasing to operate, many of their clients are now stuck with uncompetitive rates, no top up facilities & no customer service.The second mortgage, secured with the same assets as the first, usually carries a higher rate of interest than the first mortgage.The amount that can be borrowed is based on the equity in the home, which is the difference between the current value of the property and the amount that is owed on it.By consolidating your debts into a home equity loan or line of credit, you'll have the convenience of one consolidated payment rather than having several bills from different creditors.This makes bill payments more manageable and the rate is usually lower, helping you pay off your debts sooner.Homeowners who are looking to consolidate their debts have the option of using their home equity to secure a loan or line of credit.
With New Zealand experiencing a most unfortunate string of tragedies over recent years, such as the mining disaster, Christchurch earthquakes and tornadoes we have all been given a very close to home reminder on the importance of having Personal Life Insurance and Home and Contents cover. A Personal Loan, Second Mortgage or Caveat Loan can give you almost immediate access to equity in your home.
Consolidating the two into a new, 15-year mortgage at 4.5 percent costs more per month, but less over the life of the loan.
A ,000 credit card balance at 16 percent interest plus a 0,000 mortgage at 4.5 percent interest rack up 0,936 in interest payments over the life of the loans.
Your best option is probably to refinance now as interest rates are still very low and look to consolidate some of that short term debt.
Refinancing is a great time to review your Home and Contents and Personal Life Insurance.
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A second mortgage is quite simply a loan taken after the first mortgage.