Husband and I are considering a 2nd home, is it better to refi my 1st mortgage or get a separate loan?

Second home interest rates are essentially the same, so there is not significant savings there, although depending on your overall circumstance, there may be minor differences. Avoiding PMI on either loan is another consideration. We are lacking a lot of data to make any strong considerations, but I lean towards refinancing the current home. That way, if anything ever goes wrong, at least you own one house free and clear. www.Minneapolis-Mortgage.net

Laura,Either way could be beneficial depending on the circumstances. I am a lender in Tulsa. I would be glad to help you decide what would be the best route. TYLER WHYBURN l Mortgage BankerCurrington Mortgage Company 8516 E. 101st Street Suite F l Tulsa, OK 74133 p 918.394.5626 (LOAN) l f 918.394.5636 l c 918.809.5444 www.ownyourdoorbell.com, www.curringtonmortgage.com, www.21dayclose.com21 Day Closing Guaranteed.NMLS #858012Branch NMLS #203931

It's better to get a 2nd. home.

I meant 2nd. loan for a 2nd. home.

As others have suggested, it's probably the best advise to go with refinancing your current home, taking the cash out and purchasing the 2nd home all cash.. you will have more negotiation power if your purchasing with cash. One thing you might want to think about is the tax implications.. we know that mortgage interest is tax deductible, however, when you do a cash out on your primary residence, it can change how much your allowed to deduct.. getting a mortgage on the 2nd home would be tax deductible, so depending on how your tax structure is, could determine which might be the better path.. talk to your accountant and run the scenarios by them and see which way they say would be better.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Need more information. Are you refinancing to pull cash out for a down payment on the 2nd home?

I agree with Jericho, we need more to go on. One important factor would be the rate on your current primary home. If it is higher than current market rates for a refinance, you may be able to lower your current rate and get the cash out you need for a 2nd home purchase in one transaction. One other thing to consider is that you may have a little more negotiating power if you are taking out enough money to buy your 2nd home all cash, i.e. you've already completed the cash out refinance and you have the money waiting in your bank account. Your offer may be chosen over another similar offer simply because you have already completed the loan process. Best advice, as with almost any mortgage question, is to call a reputable, local mortgage professional.

If you have sufficient equity in your current home, it might be best to refi the first mortgage. However, if your rate is significantly lower than the current market rates (on your existing first mortgage), you may be better of to just do a separate loan for the property you are buying so you don't increase the rate on your current first mortgage. We are local in Oklahoma and are happy to help. Feel free to contact Nick Utesch at 918.895.4500 for more info. Thanks!