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Bruce Walton

Lender

Licensed Mortgage Loan Officer (20 years experience)

Specialties:
Purchase Loan,
Refinancing,
Home Equity,
Mortgage Planning

Advice

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Should I refi?

Answer

KG, I agree with Ramona.  If you have the money to pay off the 2nd it will be a better deal all the way around.  From a Basic Math standpoint, there are very few investments that are going to earn more than 8% (the rate on your 2nd).  So, if you have 18K - 21K in some investments that are not earning as much as your 2nd is costing you, then it may be worthwhile to use the money to pay off your 2nd, and reinvest the monthly 2nd mortgage payment or even use it to pay off other debt.

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