JohnBuck
Joined: 19 Jun 2010
Posts: 1
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| Posted: Sat Jun 19, 2010 7:50 am Post subject: To pay off 2nd home loan and Refi 1st mortage or save cash |
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My wife and I purchased our first home (a townhome) 4-5 years ago at the housing peak. (lucky us). Since we were just out of college with limited cash on hand, we ended up with a primary 80% mortgage and secondary 20% mortgage.
Our current home value and mortgage owed are roughly equal at this time. Our primary mortgage is at 6.35% (209k) and secondary 7.25%(45k). We plan on living in this home for another 5-6 years.
We have the opportunity at to pay off the secondary mortgage in full and refinance our first loan. However, having been burned buying our 1st house and watching it drop in value are hesitant to sink more money into it.
Does it make sense to do this and continue to pay extra in the continuing years off our mortgage and when we sell our house to use the money from that for our 20%+ on our next home
Or.... just accumulate cash to use as a 20% downpayment on our next home, thinking that we may have negotiation room with home seller agent and loan company if sell our home for less than or around the actual cost of our current loan? |
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