Consolidating first second mortgage loans
It’s possible to add the costs associated with getting a new mortgage into the total refinance amount to avoid paying anything out of pocket at closing.However, refinancing to get cash out or consolidate your debt may result in a longer loan term or a higher rate, and that might mean paying more in interest overall in the long run.Second charge mortgages are often called second mortgages because they have secondary priority behind your main (or first charge) mortgage.They are a secured loan, which means they use the borrower’s home as security.
A second charge mortgage allows you to use any equity you have in your home as security against another loan. Equity is the percentage of your property owned outright by you, which is the value of the home minus any mortgage owed on it.
Nationwide Mortgages provides info on "debt consolidation loans" from a refinance loan via a fixed rate 1st or 2nd mortgage lien.
We invite homeowners to shop and compare debt consolidation rates.
If the current value of your home is greater than your current mortgage balance, it means you have equity in your home.
You may be able to use this equity to refinance your current mortgage and receive cash at a low interest rate to pay off your credit card debt.