Posted on: 30th Mar, 2009 07:14 am
my brother and i are in our mid to late 20’s and own a 2 unit home valued at approximately $75,000 free and clear. we have a 30 year mortgage (out on another home valued at approximately $40,000) at a fixed rate of 7.4395%. we have been paying on this loan for almost 3 years. (pmi of $20 a month). each of these are rental units.
i know mortgage rates are at an all-time low slightly under 5%. would it be better for us to refinance our current mortgage or take out a home equity loan and use it to pay it off.
please factor into the equation that i plan on purchasing another property in the next year or so which will be my primary residence.
i know mortgage rates are at an all-time low slightly under 5%. would it be better for us to refinance our current mortgage or take out a home equity loan and use it to pay it off.
please factor into the equation that i plan on purchasing another property in the next year or so which will be my primary residence.
Hi hotshades,
In my opinion, it would be better if you could refinance the mortgage at a lower rate. If you take a home equity loan, you'll have to pay off two loans - the primary loan as well as the HELOC. On the other hand, if you refinance the property, you'll have to pay off one loan and that too at a lower rate.
Take Care.
In my opinion, it would be better if you could refinance the mortgage at a lower rate. If you take a home equity loan, you'll have to pay off two loans - the primary loan as well as the HELOC. On the other hand, if you refinance the property, you'll have to pay off one loan and that too at a lower rate.
Take Care.