If one has not availed of a loan ven before in this type of economy,then he or she is in for a rude awakening. Before the housing industry collapsed, 90% of mortgage guidelines on refinancing second homes were dominated by industry giants Fannie Mae and Freddie Mac, today, the game has changed.

Refinancing the first home is not the only source of saving money; one can also make money by refinancing their second home. A lower interest rate on your second home could do a lot for you, like home improvement payments, new furnishings and furniture, or even savings for the family. If you qualified for a mortgage refinance on your first home in the last year or so, chances are the second home can be refinanced as well.

For refinancing second home, it is important to know what is a second home. A second home is a one-unit property owned by an individual, or a rental that is not subjected to time-ownership. It may also be considered a non-primary residence. A second home is also the vacation home, or the home where one can go to on extended weekends. There are advantages when refinancing a second home such as surplus money to pay for other bills, credits cards bills, student loans, improvement of property and as well as protection of personal credit.

There are many proicedures involved in refinancing second home but here’s a practical guide to help you in making the wise choice. Try to be updated with existing mortgage lenders for refinancing opportunities, such as the latest guidelines and currently existing rates. Having a good credit history greatly increases the chance of being approved for a second home mortgage.

After establishing a network with some mortgage lenders, choose a lender that provide the lowest costs for refinancing your second home. Make sure that lender will be there to meet your needs because guidelines for refinancing second homes are much stricter compared to primary home refinancing. As a word of caution, expect to have higher interest rates and property taxes. Just be transparent about the use of the property and submit required documents, it’s more likely would be able to get your mortgage immediately.