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Originally Posted by getoutofdebt
Is this really a good idea? I've been paying the first mortgage and home equity loan since I've had the house for 4 years and the first mortgage has already a fixed rate of 6.375%. Why would they recommend refinancing instead of just paying off the home equity loan? I feel like I'm getting the run around because I've already paid 4 years worth of interest on the 1st mortgage to get into another one for the same term and not much saving in the interest rate?
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my guess is they're making money on the fees for the consolidation and hoping that you'll be awed by the 0.2% interest rate reduction! if it were me i'd just pay off the equity loan, and then roll the payments you'd been making on that onto the regular mortgage...