topic Re: Coonsolidate or Not in Mortgage Loans

Coonsolidate or Not

Anonymous — Wed, 31 Dec 2008 02:28:51 GMT

I have two mortgage loans for two homes.

I owe 33,500 on one and 86,500 on the other both loans are at 5.5% Fixed.

The payment for the 86,500 mortgage with taxes and insurance is 1300 a month and will mature in 10 years.

The other payment for the 33,500 mortgage with taxes and insurance is 1040 a month and this loan will mature in 2012.

My question is should I consolidate the two to make one payment or should I keep them as is and try to pay the smaller one off early?

Re: Coonsolidate or Not

Lel — Wed, 31 Dec 2008 05:26:52 GMT

I don't think you can consolidate mortgages on two separate properties into a single mortgage. You might be able to refinance each loan separately, but I don't know if you're going to get a rate low enough to justify the closing costs.

Since both loans have the same interest rate, it doesn't matter which one you pay down first. You save the same amount of interest regardless of where the extra payments go.

Re: Coonsolidate or Not

ShanetheMortgageMan — Wed, 31 Dec 2008 17:35:44 GMT

Since your loan amounts aren't that much and your interest rate is already pretty low there isn't going to be a huge benefit for refinancing at this point. I'd wait to see if rates get lower, try to aim for about 4.5% with no or only 1 point.