Consolidating first second mortgages
If there is any money left over, the holder of the mortgage in a second -- or subordinate -- position gets paid next.When you refinance a first and second loan, your primary lender will ask that the holder of your second loan agree to remain in its current, subordinate, position.Rather than paying two separate mortgage payments, you might be able to make a single payment and lower your overall payment amount.The first thing you should do is contact an experienced professional to see if it’s in your best interest to move forward.You have no equity in your home and two mortgage loans, something you'd like to change.
Check with a Credit Counsellor to make sure that you choose the right option.
So if the bank thinks that your home is worth 0,000 and your mortgage is for 0,000, then you own ,000 of your house. Increasing your mortgage is something that the bank may let you do, by taking out a second mortgage to use up some of this equity to pay off your debts.