How many mortgages do I have on that house?
If you have more than one mortgage on your vacation home, refinancing gets more complicated.
Unless both your mortgages were made simultaneously and used exclusively for buying that home, rolling two mortgages into one when you refinance is often classified as a cash-out refinance, Hackett says. With a cash-out transaction, lenders want to see more equity in the home, Hackett says.
In Florida, that often means at least 25 percent equity -- and guidelines are similar across the country, Noriega says.
Instead of consolidating two loans, you could pay off the second mortgage before you refinance. Or you could refinance only the first mortgage, if the second mortgage lender will allow it, in a process called subordination.
Without subordination, a lender won't refinance your first mortgage, Frank says. And not every second-mortgage holder will agree to subordinate, she adds.