Mortgage rates on second mortgages? (PMI, loan, interest rate, credit score)

[KristyLiz]

We closed on our house in October, and did an 85/15/5 loan configuration. Our 15% second mortgage is at 9.25% interest and I really want to take advantage of the lower rates and refinance.

Now, I realize that rates on second mortgages are always higher, but what are they now - we were told that we are "A-Paper" in terms of qualifications (whatever that means).

Thanks!

[renriq02]

A Paper means you have an excellent credit score.

You should look into refinancing to 1 loan....Lender Paid PMI

[renriq02]

try the 1 loan 95% ltv LPMI (lender paid PMI)

You might get a low interest rate for both mortgages.

A Paper means you have excellent credit. (720+)

[TwiloMike]

Originally Posted by KristyLiz

We closed on our house in October, and did an 85/15/5 loan configuration. Our 15% second mortgage is at 9.25% interest and I really want to take advantage of the lower rates and refinance.

Now, I realize that rates on second mortgages are always higher, but what are they now - we were told that we are "A-Paper" in terms of qualifications (whatever that means).

Thanks!

Second mortgages are not well priced at all these days, even if you have great credit. There isn't a secondary market appetite for second mortgages.

LPMI simply means that the lender will jack the interest rate to cover the PMI you would have otherwise paid yourself (and gotten rid of once your home appreciated to give you 78-80% equity) so while there won't be a separate PMI charge for you to see, you will be paying for it until you either refinance again, sell your home, or pay off the mortgage in full. PMI is not a bad tool to have in your hands. I wouldn't give it to the lender.