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 amortization calculator to see where you are in both mortgages, then calculate your interest costs after a consoldiating refinance.
Should we consolidate our first and second mortgages into one loan?
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