Re: Seeking answers
Is the 1.25% a fixed rate? How much are the closing costs? Factor that amount into the total package to see what your interest rate would theoretically be. If it's still pretty stinking low, I'd do it on two conditions:
1. You understand and realize how you got to be in that situation and know that accruing any more debt is out of the question.
2. The total amount combined that you were paying on all debts now goes to the new mortgage. Not only would you be paying everything down as before, but at a much quicker pace due to the lower interest rate. And if for some reason you couldn't make that payment amount (emergency, etc), you have the option of paying just the minimum.
I think you will find that not only will you be paying less in interest, but you could possible pay everything off quicker...
I'd do it...good luck in whatever you decide.
Dixiechick
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