Combining 1st and 2nd loans and rates. When is it worth it to me to refinance?

Hi Tommy. From the situation you just described it would definitely pay for you to look into your refinancing options. You could either combine both mortgage into one loan or reduce the term. Rates are definitely at historic lows and we look to put you in the best loan possible. Freedom Mortgage is a Direct Lender and we fund loans in all 50 states. Please send me an email at adennie@fmbranch.com so I can go over your options. Thanks.

I agree with the other lenders. You're in a good position to see some significant savings. The term/years you would want to refinance into would all depend on your financial goals. Personally, I've never heard the rule of having to drop your rate by 2% to make it worth it; I have heard it at 1%. Really, it's all relative to your loan size, terms, how long you've had your current loan, and even more important, how you plan to use the loan to meet your financial goals.

I wonder where the 1% or 2% myth come out from. So many people told me that, but no one knows the source. This is the most ridiculous mortgage myth that is out there. Just as quick example - if you are going with no cost refi you will benefit even saving 0.125% off your rate as you can generally end up paying off your loan 6-7 months faster.. Each situation should be considered individually. In your case the recommendation is definitely go for it. If the value of the property is high enough - you will benefit a lot from this refi.

it is worth to refinance and combine both mortgages to one if your second is a heloc and is intrest only and if closing cost is not insaine and do reduce the term if not it is not going to help in long run if your goal is to pay off this mortgage soon. i am not liscenced in WA state just a tip for you.