Should I....

you can refinance if the monthly payment you would have to make with the current rates is lower than what you are paying now. also ask the lender if there is any prepayment penalty and if it exists then for how many years.

thanks but our current fixed rate at 5.5% which of course we will not refinance. i will have to check prepayment penalties,didn't think of that,thanks!

Hi Storm,

Welcome to the forums.

You have mentioned that your current fixed rate is 5.5%. Is it the interest rate on the first mortgage? If so, then it is better not to refinance the loan as it is already offering you a low rate.

I am not aware of the rate on your second mortgage. But I guess it is higher than the rate on your first loan. You may consider taking out a cash-out refinance loan having an amount exceeding the unpaid balance of the second loan. You can then use the proceeds to pay off the second loan and then use the remaining to pay off a certain part of the first loan.

Thanks,

Sara