Can I Combine My Mortgages?

When you have multiple home loans, the question that may come to mind is: Can I combine my mortgages? The brief response is yes, it can be done, however, it will depend on your financial objectives, property classifications and lender conditions as to whether it will suit you.

Are you getting tangled up in a home equity loan and your first mortgage? Or perhaps you have several loans on several properties and would like to combine them? Well, there are solutions available to you. But before you dive in, it might be worth seeing how it works, when it does make sense, and what to be aware of.

Let’s break it down.

What It Means to Combine Mortgages

Combining mortgages usually means refinancing two or more existing home loans into a single new loan. This might include:

• A first mortgage and a second mortgage (like a home equity loan or HELOC)

• Mortgages on multiple investment properties

• Refinancing with a cash-out option to consolidate debt

Some folks do this to lock in a better interest rate, simplify their payments, or access equity to fund other goals (like buying more real estate). Others want to clean up their finances and make things more manageable.

The key is qualifying, because lenders are going to want to know you’re in a solid spot financially before they approve a new, larger loan.

Reasons You Might Want to Combine Mortgages

Here’s why people look into combining mortgages in the first place:

1. Lower Your Interest Rate

If you took out one of your loans when rates were sky-high, and the market's cooled since then, you might be able to refinance at a better rate. That could mean big savings over the life of your loan.

2. Simplify Monthly Payments

It’s tough enough keeping track of one mortgage. Two or three? That gets complicated fast. Combining them means one due date, one monthly payment, and less mental clutter.

3. Free Up Cash Flow

If your monthly payments are lower after refinancing (thanks to a better rate or longer term), that frees up money you can use elsewhere, like fixing up a property, covering personal expenses, or reinvesting.

4. Unlock Equity

With a cash-out refinance, you might be able to borrow more than you owe and take the difference in cash. This is popular with folks looking to scale their real estate portfolios or tackle large expenses.

When It Makes Sense to Combine Mortgages

Merging loans can be smart, but it isn’t for everyone. It often works best if:

• You’ve built decent equity in your home(s)

• Your credit score is in good shape

• Interest rates are lower than when you got your original loans

• You plan to stay in the home long enough to break even on the costs of refinancing

If you check most of those boxes, you might be in a good position to combine your mortgages.

Options for Combining Mortgages

Let’s go over the most common ways people combine loans.

Traditional Cash-Out Refinance

This is your classic option. You refinance your primary mortgage and second mortgage into one new mortgage, taking advantage of better terms or tapping into home equity.

Pros:

• Better interest rates than other debt consolidation methods

• One payment to manage

• Can take cash out for other uses

Cons:

• You’ll pay closing costs again

• It resets your loan term, which might mean paying more interest over time

Home Equity Loan Refinance

If you’re primarily looking to wrap a home equity loan into your main mortgage, a standard refinance can do the trick. Just make sure your combined loan-to-value (CLTV) ratio isn’t too high, that could make lenders nervous.

Portfolio or Blanket Loan

For real estate investors, a blanket mortgage might make more sense. These cover multiple properties under a single loan. They're harder to find and come with stricter terms, but they simplify the big picture.

What Lenders Look For

Combining mortgages isn’t as easy as stacking pancakes. Lenders are going to dig into your financials. Here’s what you should have lined up:

• A credit score of at least 620 (often higher for investment properties)

• A stable income and proof to back it up

• An acceptable debt-to-income (DTI) ratio

• A reasonable loan-to-value (LTV) ratio

• Cash reserves (especially if you're combining investment property loans)

It helps if you've got rental income or other cash flow from properties to show you're financially healthy.

Risks to Keep in Mind

No money move is perfect. Here are a few things to consider before you move forward:

• Fees and closing costs: These can be hefty, and you’ll need to budget for them.

• Longer loan term: A lower payment might sound good, but if you’re stretching your mortgage back out to 30 years, you may end up paying more over time.

• Loss of flexibility: If you liked being able to pay down one loan faster than another, combining them takes that option off the table.

• Property risk: In the case of blanket loans, defaulting puts multiple properties at risk.

Combining Investment Property Mortgages

Let’s say you’re scaling your real estate empire. You’ve got six or seven rental properties, each with their own loan. Can you combine those?

Yes, with options like blanket loans or portfolio loans. These aren’t your everyday mortgages; they’re custom-made for investors.

Expect higher down payments, stricter credit score requirements (usually 720+), and strong documentation. You might need proof of rental income, reserves for emergencies, and a detailed breakdown of your current portfolio.

At a certain point, conventional lenders might cap you at 10 properties with mortgages. Once you reach that level, it’s time to look into more specialized financing.

Is It Worth It to Combine Mortgages?

In the right situation, yes. But it’s all about your bigger goals:

• Want to simplify payments? It could help.

• Looking to lower your rate? Refinancing might be worth it.

• Need cash for a new project? Cash-out could give you the boost.

Just be sure to compare all costs, ask about long-term implications, and choose the setup that matches your game plan.

So, Can You Combine Your Mortgages? Yes. Should You? Let’s Talk.

If you're juggling multiple mortgages and thinking, "This has got to be easier," you're not wrong. Whether you're a homeowner trying to clean up your finances or an investor expanding your reach, combining your mortgages could be a smart move.

But don’t wing it. Talk to local experts who understand what works here in the Valley.

At Movement Mortgage RGV, we know mortgages aren’t one-size-fits-all. That’s why we take the time to understand your situation before recommending any loan solution, whether you’re looking to combine, refinance, or buy again.

Our team brings local know-how, years of experience, and a real passion for helping families across the Rio Grande Valley build wealth through homeownership. Since 2008, we’ve helped thousands of families not just close on homes, but open doors to new opportunities.

Want straight answers and people who treat you like a neighbor, not a number? That’s what we do best.

Start your mortgage game plan with Movement Mortgage RGV.

Looking for the Best Mortgage Lenders in the RGV? We’re proud to be your trusted team. Whether you need guidance, a refinance, or a full financial strategy, we've got you covered.

Schedule a free consultation and let’s find the best path forward, together.