Refinancing Two Mortgages and Calculators

Anyone who has tried to make a decision about what to do when attempting to handle both a first and 2nd mortgage when refinancing knows it can be very difficult. There are a variety of options available to these borrowers, and there are also many variables to consider when making a decision on which option would be best for them.

Because the calculation is so complex in this area, many borrowers benefit from using a calculator specially designed to do the math for them and help them compare the costs and benefits of each available option. These types of calculators are readily available online, and can allow borrowers to make an informed decision without becoming an expert on all the intricacies of the transaction.

Sometimes you will be required to use more than one calculator to get a full picture. Some calculators assume you will refinance only your first mortgage. Other calculators assume you will refinance both mortgages, either with one or two new loans. Most calculators will show you both the potential savings from the refinancing options and the breakeven period.

The breakeven period tells you how long you need to stay in your home to break even from the refinancing transaction. If you stay longer than this period, you will begin saving money due to the refinancing.

Because each case is different, the refinancing of two mortgages, or some combination thereof, is a particularly good situation to use a calculator. You may save money by refinancing only your first mortgage, refinancing both into two loans, or consolidating both loans. You will only know for sure once you calculate and compare all available options.