Refinance?

[Bimmerbill]

Ok, I need help calculating if refinancing my primary mortgage and paying off my home equity is a good idea.

124K on primary at 6.25%, 30 year total, paid 4 years.
37K on home equity, I just locked in rate of 6.99% for 15 year pay off.

I am looking at rolling both together and refinancing for 30 years, paying twice a month (my current mortgage holder doesnt have a bi weekly program) to cut off a lot of interest and shorten the term. 6.125%, .5 points and about 2500 cash required for closing costs.

I will then pay extra on it. I think I will save on the home equity loan, but not sure.

 

[brewer12345]

I come up with an effective rate of 6.32% on the new loan, ignoring any prepayments you choose to make. Considering that you now have a blended rate of 6.42%, I don't think it is worth refinancing. If you want to cut interest expense direct you extra payments to the home equity loan.