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Second Home Mortgage Refinance

It is possible to refinance any mortgage including the mortgage on your second home. Some second home owners are able to get a better interest rate and lower mortgage payments through this process.

Second home mortgage refinance isn’t usually as beneficial as refinancing the mortgage on your primary home. Many of the mortgage benefits that are available for your first home, such as lower interest rates, are not offered for second homes. 

There may still be some advantages to refinancing your second home mortgage. It is still possible to get a lower interest rate or better terms on your second home mortgage.

When to Refinance Your Second Home Mortgage

The time to refinance your second home mortgage is when you know that you can get a better interest rate or better terms by refinancing. If the interest rate on your second home mortgage is substantially higher than that being offered right now you should look into refinance.

You should also look into second home refinance if you have a floating interest rate or adjustable rate mortgage on your vacation place. The terms of these mortgages allow the lender to increase the interest rates during the life of the mortgage. This can cause your mortgage payments to increase substantially.

Refinancing your second home mortgage to a fixed rate mortgage can lock in a lower interest rate for the duration of your mortgage. The rate on a fixed rate mortgage stays the same for the entire history of the mortgage.

Another time to refinance your second home mortgage is when your credit rating approves. If your credit rating is better now than when you got your second home mortgage you might be able to get a better interest rate through refinance.

Turn Your Second Home into Your First Home

The best way to get a great deal on your second home mortgage refinance is to turn your vacation residence into your primary residence or first home.

By converting your second home into your primary home you will be able to get a better interest rate and better terms. This way you will be able to qualify for the lower prime interest rate on your mortgage. You will also be able to qualify for some other great mortgage deals such as VA mortgages.

Another advantage to making a second home a first home is that you will be able to write the mortgage interest on it off as an income tax deduction. This can take hundreds of dollars off your income tax every year. There are other mortgage credits that you’ll be able to qualify for by doing this as well.

Always check with a tax attorney before taking this move so you will know you are not violating the law by doing so. A tax attorney will show you how to do this legally so you can avoid unwanted tax charges.