by Lauren Rosales-Shepard, Content Writer
Refinancing a second mortgage can be a strategic move to lower your monthly payments, secure a better interest rate, or adjust the terms of your loan. Whether you’re looking to save money or consolidate debt, understanding the refinancing process is essential to achieving your financial goals. This guide will walk you through the steps to effectively refinance a second mortgage.
Unison’s application process is convenient and easy–homeowners have the option of a completely online experience, and our licensed loan experts are happy to help over the phone. If you are searching for a way to refinance your second mortgage for half the monthly payment as other equity financing products, the Equity Sharing Home Loan just may be the right fit!
The content on this page provides general consumer information. It is not legal or financial advice. Unison has provided these links for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of the other websites.
Refinancing a second mortgage can be a strategic move to lower your monthly payments, secure a better interest rate, or adjust the terms of your loan. Whether you’re looking to save money or consolidate debt, understanding the refinancing process is essential to achieving your financial goals. This guide will walk you through the steps to effectively refinance a second mortgage.
Steps to Refinance a Second Mortgage
Assess Your Financial Health:
Familiarize yourself with your credit score, your DTI (the lower, the better!), and the amount of equity you have in your home.Set Your Refinancing Goals:
What do you want to achieve through refinancing? Clarifying your goals will help guide you in your decision. For example, are you looking to reduce your monthly payments, save on total interest, or switch to a different loan type?Shop Around for Lenders:
Not all lenders offer the same terms, so it’s crucial to compare options. It can sometimes be difficult to really get a grasp on how much a loan might cost–look at the monthly payment for a clearer picture.Gather Your Relevant Documents:
You should be prepared to provide proof of income (e.g., pay stubs, tax returns), bank statements, details of your existing mortgage(s), etc.Apply for Refinancing:
Submit your application to the chosen lender. During this process, the lender will likely review your credit score and financial history, verify your income and employment status, and also order a home appraisal.Review Loan Terms Carefully:
Once approved, the lender will provide a loan estimate outlining the terms. Scrutinize the document to ensure it meets your goals.Close on the Loan:
At closing, you’ll sign the new loan documents and pay any required fees. The new loan will then pay off your existing second mortgage, and you’ll begin making payments on the refinanced loan.
Refinancing a Second Mortgage with a Unison Equity Sharing Home Loan
If the high monthly payments required by your current second mortgage are seriously cramping your style, you might be interested in refinancing with an Equity Sharing Home Loan from Unison. Unison designed the Equity Sharing Home Loan specifically to provide relief for homeowners whose steep monthly debt obligations are stripping them of their financial flexibility. The 10-year, interest-only loan empowers homeowners, offering:Breathable Financial Structure:
A ten-year, interest-only loan designed specifically to keep monthly payments low and manageablePartnership Mindset:
Through shared appreciation, Unison aligns its success with your home's future valueCompetitive Rates:
Access your equity without the burden of excessive interest chargesFinancial Freedom:
More flexibility to use–or save!-- your funds while maintaining comfortable monthly payments
Unison’s application process is convenient and easy–homeowners have the option of a completely online experience, and our licensed loan experts are happy to help over the phone. If you are searching for a way to refinance your second mortgage for half the monthly payment as other equity financing products, the Equity Sharing Home Loan just may be the right fit!
The content on this page provides general consumer information. It is not legal or financial advice. Unison has provided these links for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of the other websites.
About the Author
Dr. Lauren Rosales-Shepard
Dr. Lauren Rosales-Shepard is Unison’s content writer. She has a PhD in English from the University of Iowa, and after several years of teaching rhetoric and composition as a college professor, she joined Unison in 2022 to bring her writing and research skills to the realm of fintech in real estate.
