If you live in the Washington D.C. metro area (comprising of District of Columbia, Maryland Suburbs and Northern Virginia), you live in one of the most expensive regions in the country. You also live in one of the best areas to own real estate. Home values have appreciated significantly over the past 10 years, allowing some homeowners to double their home purchase value. With the average home priced at $300,000 or above - this is a great way to build wealth.

Due to the high home prices in the D.C. area, most homeowners, do not put down the traditional 20% mortgage down payment on new home purchases. Homeowners often put down 5%, 10% or even 0%. 0% money down mortgage loans also referred to as "no money down home purchase loans" or "100% financing home purchase loans" are usually accomplished by the homeowner getting two mortgages.

The first mortgage is for 80% of the home's value and the second mortgage is for 20% of the home's value. This leaves the homeowner with a first and second mortgage loan. Splitting the mortgages into two loans, allows the homeowner to avoid paying private mortgage insurance also known as PMI.

If you are in this situation and would like to consolidate your 1st and 2nd mortgage loans into one loan to save money - you will need to refinance your mortgage loan. In most cases, your second mortgage loan will have a very high interest rate so it makes sense to refinance and consolidate both loans into one loan. In addition, refinancing to consolidate your two mortgages is convenient, because you no longer have to pay two mortgage companies - just one.

Get more information about consolidating your 1st and 2nd mortgage loan at the loan resource website:

http://www.kstreetloans.com

Sharon Listner writes about family and finance with a special focus on Washington D.C Metro Area Mortgage products.

Source: www.articledashboard.com