This is for my own personal situation. Thought you all have the knowledge here, why not ask my (future, hopefully sooner rather than later!) fellow investors -
Have an I/O first mortgage with a locked rate that will expire March 2008 and a HELOC with a variable rate - currently around 6.15%. Both were originated March 2005.
I am really starting to worry about the prime rate going up and up - we did this so I could stay home with our baby and take a 3 year leave from my job, and pay off the car payment. No other debts at all.
Any advice on how I may best consolidate this, still keep a low monthly payment (right now I pay approximately $1068 for the 2 notes a month)?
It also depends on what kind of rate you are at on your current 1st mortgage- if it is good, then you may be better off staying put. How long do you anticipate staying in this house? Might you move before March 2008?
its a possibility, as my husband is getting his MBA next AUgust and hopefully that investment will pay off in a (much) higher paying job - yes speculation, I know but you can’t ever lose with education, IMHO.
Your current 1st is a good one, in my opinion. In order to get a comparible rate, you would probably have to pay points, and the closing costs would be significant. I would suggest trying to refinance the 2nd only- we just refied our personal home (2nd) with Wells Fargo on a new program they are offering- it is fixed for 3 years, interest only, and then after the 3 years, it works like a home equity loan and is tied to Prime. We are also on a 5 year ARM that is good until 2009, so now we have the stability for 3 years, and we will likely move after 3 years anyway.