Posted on: 18th Oct, 2010 10:36 am
i am currently up-to-date on my 1st (312000) and 2nd mortgage (54000). however, they are 30 year loans where they are interest only for 10 years, then the terms change. i have had these mortgage loans now for 4 years. i was contemplating on paying off the 2nd and then would try and refinance the 1st. my home value has dropped and is worth about 290,000. is it wise to do this?
Yes, I would pay off the second and refinance the first. The, you may qualify for the DU Refi Plus program which would allow you to refinance more than your home is worth and possibly without PMI
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Anyone who has an interest-only loan who also has the wherewithal to pay it in full without doing irreparable harm to himself ought to do just that - pay it off.
