Refinancing with Two Mortgages: Why You’d Do It and What to Expect

Two super hero women: Mortgage one and mortgage two

Refinancing can be beneficial for many homeowners. It can lower your rate, your monthly payment and maybe even shorten the total length of your loan. 

But if you have two mortgage loans on your hands? Then refinancing might be even more powerful a financial tool.

You might have two mortgages because:

  1. You took out a home equity loan to pay for renovations, medical bills or other expenses.
  2. You piggybacked your loans when purchasing your house.
  3. Your own two properties and have a separate mortgage loan on each.

Refinancing in one of these scenarios can allow you to combine your loans, and thus your monthly payments. Rather than making two separate payments (and paying two chunks of interest), you’d simply pay one.

Other Benefits of Refinancing Your Two Loans

Given the market’s current low interest rates at the time of publication, a refinance could also reduce your interest rate, reduce your monthly payment, and reduce the total amount of interest paid over the life of your loan.

If either of your current loans has an adjustable interest rate (meaning your interest and payments can rise over time), then a refinance could help you lock in a fixed rate. That would mean a more consistent and reliable payment each month. 

Finally, a refinance could also help you pay off your loans faster and more affordably.

How it Works

In order to refinance your two loans, you’ll need to apply for a new mortgage loan with your chosen lender. The total of the new loan will include the balances of both your existing mortgages. 

Your new loan would also come with a new interest rate and potentially new loan term.

If you have the available equity and want some extra funds to cover home renovations or other expenses you might have, you can even refinance for more than your current loan balances, and then use the excess cash for whatever you want. In some cases, you may also use your refinance to consolidate other loans or debts you’re dealing with.

Have Two Loans to Your Name?

If you have two loans, then a refinance could help you reduce your costs and streamline your repayment. Get in touch with an Embrace loan officer to discuss your mortgage refinancing options today.

Share this:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.