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Originally Posted by getoutofdebt
Thanks so much for the advice. So I have paid off for the car loan and bought the new vehicle cash. I went to seek "professional" advice from my bank's financial advisor. Their recommendation is that they can consolidate my 1st and second mortgage into another mortgage with 6.125% fixed interest and another 30 year term.
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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Not to mention the closing costs you would have to pay. Doesnt sound worth it to me.
Im with ima. Id pay off the home equity, make double payments on the car, and move the savings into an ING account. If you arent comfortable with moving all of it there, move some of it to try it out.