Is it worth refinancing?

Question

MY first morg. is for 151.000 with 11 yrs left at 5.25%. The 2nd is for 192.000 with 28yrs left at 7.5%. I'm thinking of puting them togehter into one morg. at 6.3% for 30yrs. I'll be saving about 750 a month in morg. payments, but I'm back to 30yrs. morg.

Answer 1

not at all that is way too much  try to seell your house and live in an apartment

Answer 2

you've paid 19 years of interest on the 1st mortgage and there is very little interest being charged, most of your payment is going to pay the principal, and in 11 yrs you'll be free of the $151,000.    Keep that mortgage.   BUT you could try finding a lender that will refinance your 2nd mortgage and lower the interest rate down from 7.3 to 6.3%  that would be good.    

If you can't refi the 2nd, then the savings of $750/month are substantial enough to refi both loans into one; and this is what you do to lower the 30 years down to 21:

* sign on for a bi-weekly partial mortgage payment draft that is automatically withdrawn from your checking account regularly. this lowers the compounding of your interest rate (ask your lender about this type of program, most have it.)

* you send in the $750 monthly savings for the first 5 yrs, then an extra 3 monthly mortgage payments annually. (this also lowers the interest payments down, by lowering your principal).

In conclusion, if you refi, there are ways to lower the 30 year amortization down by doing those things above,  So, it's another way you would be ahead.

Answer 3

Not enough info.......what is the closing costs.........

Answer 4

no dlaksfjdlkajsk

Answer 5

It probably makes sense, since over half of the amount already has 28 years to go, and at a much higher rate.  If you do that, why not take some of that $750 a month savings, or even all of it if you are OK for cash,  and pay it onto the new mortgage every month - that could cut down your time considerably.