should i refinance my second loan?

anthony asked:


my first loan is 300k i have 27 years left at 5.75 fixed.

my second mortage is 53k its a 15/30 balloon at 8.6% fixed. my min. payment is 459 and in 15 years i will owe 35k.
my house will appraise for about 390-415k maybe more.

i can get a line of credit at 4.25 varible 53k and the loan only cost 350$ im afraid of the varible rate but if i continue to pay 459 i will pay the loan down quicker.

i also have access to 35k at 4.25% from my annuinity 15 year loan(intrest goes back to my self)
i have 20k in my savings account.

whats my best options? i dont want to refinance both loan and pay 10k for closing costs and be at 30 years again.

Christine

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This entry was posted on Thursday, December 31st, 2009 at 4:16 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “should i refinance my second loan?”

  1. Ed Atun Says:

    Emma

    It would be easy to answer if we could only know the future. If home prices go up or down….. decides the right course.

    I think you should leave it alone. You don’t have a bad loan. Don’t worry about accelerating payments, either. Just float along and see what the future brings. That variable rate line of credit will rise much quicker than you expect.

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