Refinancing a second home is harder than refinancing your primary home. Lenders attach higher danger to homes aside from your main home since you’re more inclined to quit paying the mortgage should you encounter financial difficulty. Lending guidelines are usually tighter (lower loan-to-value ratio) than the instructions are on a main residence. Still, lenders provide many different products for nonprimary homes that are refinancing. But you must do your research to make sure to get the best deal.
Contact a mortgage lender online, by phone or in person, and complete a refinance program. The lender will examine your credit reports and program to ascertain your eligibility for a refinance loan.
Assess the loan options offered by the lending company. Select the one that best fits your financial situation. Consult with a tax professional or financial adviser if you’re uncomfortable assessing the financial implications of this mortgage. You want to be sure refinancing is a solid financial decision.
Provide any additional documents required by the creditor, such as financial statements or rentals if you lease the home when you aren’t using it. Schedule a time to meet in the home (if required) together with the creditor 's exemptions so he can establish the land 's reasonable market value.
Attend the closing to sign the mortgage records that are new. Bring a certified check made out to the closing attorney for any funds you have to bring.