Re: Refinance question - Posted by youngsterz (UT)
Posted by youngsterz (UT) on February 27, 2002 at 24:31:44:
If this home is your primary residence, look at just refinancing the 2nd with a home equity line of credit. It makes no sense to refi the first mortgage. The fees to do so make it a costly thing, with no real return for you. The line of credit, though, can be done for up to 95% of the value (at Wells Fargo, and likely other major national banks) and can be had for current variable rates of 6%-7%, usually with no or minimal fees. No origination fees, usually, just a flat fee, like $100.
If it’s a non-owner occupied, your best bet is the 90% refi, but you may have to pay the difference between the 90% and the appraised value, plus closing costs. That cost may not be worth it to lower the interest rate. Run the numbers and see.