Consolidating two mortgages

Additionally, taxpayers in higher tax brackets get to deduct the interest they pay on both mortgages on their federal and state returns.However, second mortgages have their risks: Steve Cook is managing editor of Real Estate Economy Watch, which was recognized as one of the two best real estate news sites of 2011 by the National Association of Real Estate Editors.

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Once you have entered everything you wish to consolidate, click on the "Calculate Current Debts" button.

Next, enter the consolidated loan's rate, term and any origination fees that might apply and click the "Figure Consolidating Costs" button.

To many home buyers the idea of taking out two mortgages on the same house sounds frightening.

However, a second mortgage—also known as a second trust junior lien—makes good sense in the right circumstances and can actually save you money.

You’ll need a good credit score and documentation for enough income to make the payments.

Three popular ways buyers and homeowners save money with second mortgages: Avoiding private mortgage insurance.

By consolidating your many obligations into a single one, you can often lower your interest rate and end up with a lower monthly payment.

Many people find managing a single payment easier than juggling several different bills month after month.

As you can see, this is considerably less daunting.

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