What is mortgage refinancing? When you purchased your house, you took out a loan and your mortgage is now in first lien position or in position to be paid first.

When you refinance, or take out a second mortgage, your new loan moves into second lien position. This usually means that your first mortgage will be paid off by the second one, which will then move into first lien position.

What are the benefits of A San Diego mortgage refinance? To start, you will most likely be able to pay off your first San Diego mortgage loan, and be left with just the second one, which will be even more beneficial if you were able to obtain a fixed or lower interest rate on mortgage number two.

A second mortgage is also a useful tool for debt consolidation and a way to get money for home improvement through options like 125 percent home loans, home equity loans and home equity credit lines. Last, but not least, the second mortgage typically carries a term of no less than five years of interest only payments, which is definitely a factor to consider.