Should or CAN I combine my Mortgage loan with my home equity loan (Refiance together)?

C

chatsplas

New member
Whatever else you do, the Roth IRA is an excellent idea at your age.
Paying off the HELOC is an excellent idea, also.

There are costs to doing a re-fi, and as long as you have built some equity in the house or the market value has grown, you may be able to combine them into one loan, which is sensible.
So in weighing whether to pay off HELOC or to do total refi or. . . .you need to cost these out. How long will it take you to recover the costs of a refi through the rate reductions? You STILL need 205 down, 20% equity to avoid the extra costs of PMI, which is a WASTE of money you pay because you are a poor credit risk by not putting down 20%. How long are you planning on remaining in the home?
 
In 2006 I purchased a home for $109,000, I took out a mortgage for $87,200 at 6.75% (30 years fixed) and a home equity for $10,700 at 8.74% (20 years fixed) and put down $10,000. I did this so I could avoid PMI which I did. But now I want to refinance since my rate is ridiculously high. Can I combine these two loans now, currently at $83,000 and $8100 = $91,100 combined? At my local credit union the rate they show is 5.185 % (at HSBC now). Gonna live here for at least 6 more years maybe more until my parents sell their home. Gonna talk to them but just wanted some insight before I went. To throw something else in I just won $12,000 and was thinking of just paying off the Equity loan but wasn't sure if I should invest it instead? Was gonna open a roth IRA for a retirement fund maybe with $3000 of it since I'm in my low 30's..
 
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