Mortgage refinance option 1 or 2?
I want to refinance my mortgage. My setup is I have an 80/20 loan with 1st mortgage being 161,000.00 @ 7.85 adjustable and 2nd being 40,000 @12.125 fixed, both for 30 years. Its been 2 years and I originally bought the home for 205,000. My first option is refinance the whole thing at 6.25% and lower my payment by about $ 200. The other option is only refinance the 1st and try to pay off the 2nd in about 5-7 years. What would be betterrr?