If you are a homeowner carrying a second mortgage in addition to your primary mortgage, you can save money by refinancing. You can even consolidate your first and second mortgages to have one easy payment. When your refinance a mortgage it is important to compare loan offers and shop around to be sure you get the best deal on the new loan. Here are several tips to help you find the most competitive offer for refinancing your second mortgage loan.

Save Money with a Lower Interest Rate

One advantage of refinancing is that you will have the opportunity to qualify for a lower interest rate. If rates have gone down or your financial situation has improved since you took out your original mortgage, you may qualify for a lower interest rate. If qualifying for a lower interest rate is not possible, you can still lower your payment amount by choosing a mortgage with a longer term length. The type of interest rate you qualify for also affects your payment amount. Mortgages with adjustable rates typically have lower interest rated than fixed rate mortgages, at least initially. If you need stability in your payment and have little tolerance for financial risk, choose a mortgage with a fixed interest rate.

Consolidate Your First and Second Mortgages

Consolidating your primary and secondary mortgage can reduce your payments and ease pressure on your budget. Because second mortgages have higher interest rates you may qualify for a lower rate when consolidating. You can learn more about your second mortgage refinancing options, including common mistakes to avoid by registering for a free mortgage guidebook.