Is it smart to refinance our mortgage(s)?
Our house value is around 300k (just one year ago it was 347k) We have a 5/1 interest only mortgage due for change in April 2011 – interest is 6.467% and balance 181k. Also, we have home equity loan with balance 81k and interest 5.99%. Monthly payments for both (including escrow for taxes and insurance) are $ 2800. I could possibly refinance getting 4.85%, 30 years fixed with 0.650 points, all fees and closing will be around $ 4500 and I can combine both mortgages together for one payment. We would like sell our house in about 2 years from now maximum, maybe less providing real estate market better conditions . Do you think that we should go ahead with refinancing or not? All input greatly appreciated. Thank you.