Refinance or Home Equity

OK, We own 2 houses, 1 house we rent and still hold a mortgage on it. The interest rate is too high and we would like to cut the payment down, we plan on selling the home in less than 10 years probably. We want a loan that we can pay off the existing mortgage and then have a little extra money....does anyone know what kind of loan I should be looking into? There are so many options, it's so confusing! TIA!

Sorry .. I have no idea .. just wanted to say .. I get equally confused when it comes to finance stuff and what's actually the 'right' way to handle things .. of course some would say there is no one 'right' way.

Since this is investment property I would suggest refinancing. You should aim to get the mortgage as low as possible so that your rental - mortgage is extra income.


A Home Equity is not going to bring the current mortgage down so I would stay away from it for now..


We are currently working on the same thing.

Try to refinance through the same lender who is holding your mortgage now - this should avoid incurring closing costs and it will be a straight refinance. Check out your lender's website for info or call them.

But if you can find a much better interest rate with another lender, refinance with them and you can always include any closing costs in to the mortgage amount. since you will be selling within 10 years it really wouldn't matter. This is what we did because we found a MUCH better rate with our credit union.

If you belong to a credit union - or can join one - seriously look in to it, their rates are lower and so are closing costs.