refi

You have an ARM now and on the 8th year it will adjust. There is no way of knowing if it's even possible to combine the 1st and 2nd without getting the value. That being said, even if you had the value to combine them, you may not want to do it if the 2nd is FIXED for a long term. In that case, you should consider keeping it provided it will subordinate to the first when you need to refinance. Another question to consider is: How long are you planning on keeping the home? If 4 years, then stay where you are at for now. If you don't know, then look at reducing your rate for a FIXED LONG TERM with no pre-payment or early termination penalty. I hope this was helpful. If your loan is in Arizona and you'd consider having me look at it I'd love an opportunity. There are a lot of helpful tools on my website: www.biltmorebranch.com Great question.

Good morning Glen, Fro y estimation based on the additional information received. Your current monthly payment combined without taxes and insurance is $1,331.70. This is a great time to refinance because rates are at an all time low. So you can combine both loans to one loan a 30yr fixed with a rate of 4.75. Your monthly payments would be reduced to $1,278.03 without taxes and insurance. Therefore you will save more over time and never have to worry about an arm adjusting. I just sent you an email and will be following up with you by pone shortly.

You probably have a 7/1 ARM. ... This starts adjusting once a year beginning in your 8th year. ... Currently, most ARMs are adjusting lower than what they were originally. ... That may not hold true within the next few years. ... But, you have reached a point were more of your loan balance is being reduced each month. ... That will continue to improve. ... If you get a new loan, you'll start all over again for 30 years. ... Now you have 23 years left. ... If you refinance you can keep the 2nd as is. ... You will have yo play with the numbers to see what's best for you. .... Happy funding, Rudi

Your rates are good now but what happens in 5 years from now? Can you live with the rate if it goes up by 5%? Your first mortgage lifetime cap is 5% over the start rate, in this case 10.5%, ouch, furthermore, second mortgages, in your case a line of credit, has a maximum cap of 17.99%. Rate forecasts show that rates may stay low in the near term (1-2 years) but long term will rise. A big question that I would like answered is, how long do you expect to own your home? If you plan on staying for less than 5 years, then keep the ARM's. If you plan on staying longer, then by all means refinance. Rates are still at historic lows, there is no reason not to lock in now while you can get cheap money.