Refinance question? (interest rate, heloc, second mortgage, rate)

[mommy2be1053]

So we have a first mortgage with 320K balance at 4.78 for 30 years and a second mortgage with 50K balance at 3.2 rate. Just found out we could potentially refi with Wells fargo for 3.8 rate on a 30 year loan? it's with no points and few thousand of closing costs and probably save us about 300-350 off our current mortgage payment.

Would you go for it? our home is valued at 515K. My thinking is refi the first mortgage and use the extra savings to pay down our HELOC loan. Any pros or cons with it?


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[mommy2be1053]

anyone??

[399083453]

Sure

Personally, I would take the 1st and 2nd and roll em into a single refinance.

[snowdenscold]

Depends on how long you've had your house and where you are on the amortization table. From the numbers you've given, it sounds like it's only been about 5 years. So that, combined with an ROI of only about 1 year for the closing costs (which is great), means it makes sense to me. After that, 300-350 a month makes a big dent in the HELOC.

[mommy2be1053]

Thanks all! We just bought this house 4 years ago, so yes not long and wouldn't mind resetting back to 30 years if it'll give us a lower interest rate AND a lower payment.


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