Pay off 2nd Mortgage? Or, new project?

[Chanel No5]

Two years ago, I took out a 2nd mortgage to finance a house project. I owe the bank about $17K at 4.5%. Now, I have another house project I am considering. My shed needs a new roof, siding, needs to be leveled, etc. I will have to hire someone for the job. Estimates range from $6-8K. I may scrap the whole idea, take the shed down and simply rebuild a carport/shed at about the same cost.

At this time, I have about 1/2 the cash saved. Is it better to keep saving and try to pay off the 2nd mortgage? Or keep saving toward the shed/carport and get that done maybe next year?

[researcher1]

Pay off the second mortgage ASAP!
Save up for these types of projects and pay with cash.
If you own a home, you should be able to pay for this stuff without financing it.

It is insane to pay 4.5% interest on $17K in order to level up and re-roof a SHED!

[JLee]

I would pay off 4.5% asap -- what's your first mortgage rate? You may want to refinance everything.

[Chanel No5]

I was considering refinancing. The credit union I've been a member of for over 20 years, is super conservative. My 1st mortgage, they would not write. I had to go to an outside agent to get that accomplished. Maybe five years ago, I refinanced the 1st mortgage to the credit union at 4%. The same deal with the 2nd mortgage. To finance the project, I had to go to an outside agent and refinanced it to the credit union, hence creating a 2nd mortgage. I wondered if I should just go to a local savings bank and try to consolidate the 2 mortgages into one.

Appreciate the replies

[JLee]

I was considering refinancing. The credit union I've been a member of for over 20 years, is super conservative. My 1st mortgage, they would not write. I had to go to an outside agent to get that accomplished. Maybe five years ago, I refinanced the 1st mortgage to the credit union at 4%. The same deal with the 2nd mortgage. To finance the project, I had to go to an outside agent and refinanced it to the credit union, hence creating a 2nd mortgage. I wondered if I should just go to a local savings bank and try to consolidate the 2 mortgages into one.

Appreciate the replies

I have 3.25% on a 30 year right now...you can probably beat that.  https://themortgagereports.com/today

[researcher1]

I was considering refinancing. The credit union I've been a member of for over 20 years, is super conservative. My 1st mortgage, they would not write. I had to go to an outside agent to get that accomplished. Maybe five years ago, I refinanced the 1st mortgage to the credit union at 4%. The same deal with the 2nd mortgage. To finance the project, I had to go to an outside agent and refinanced it to the credit union, hence creating a 2nd mortgage. I wondered if I should just go to a local savings bank and try to consolidate the 2 mortgages into one.

As I said earlier, never finance these types of "projects".
It is a horrible idea, regardless of whether you take out a second mortgage or refinance your 1st mortgage, to access these "project" funds.

Take your cash and pay down your second mortgage TODAY.
Save aggressively and finish paying off the second mortgage ASAP.

Then you can save up and pay for these "projects" in cash.