Q: We have a first mortgage at 5.75% and a second mortgage at 8.75%. Should we refinance and combine the two?
A: If you have an equity position which allows you to consolidate both loans into a new first mortgage -- that is, after the refinancing, your loans don't exceed about 80% of the present value of the home -- and you plan on remaining there for at least several years, you should be able to realize some considerably interest savings with a single new mortgage. Use our mortgage calculator to see where you are in both mortgages, then calculate your interest costs after a consoldiating refinance.
More help from HSH.com
When refinancing at a higher rate makes senseTrade your old mortgage for a new, higher-rate version? There are times when it actually makes sense.
Should I pay off a mortgage early?By making extra principal payments or refinancing your mortgage, you could pay a lot less interest and free yourself from your mortgage ahead of schedule. Here are the pros and cons of retiring your mortgage early.
Are ten-year fixed-rate mortgages (FRM) available anywhere?Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.