Does refinancing make sense for us?

[frugalgirl]

So, if the OP did this - took out the home equity loan to pay off his mortgage - how would the LTV be calculated? Would the two loans - original mortgage plus HEL be added together as the total loan amount?

[disneysteve]

So, if the OP did this - took out the home equity loan to pay off his mortgage - how would the LTV be calculated? Would the two loans - original mortgage plus HEL be added together as the total loan amount?

That's what I was wondering. The house is worth about 275K. We owe 91K. If I borrowed another 91K, that makes 182 which is 66% of value. However, I would be immediately turning around and paying off the mortgage, making the new loan just 33% of value if they look at it that way.