Author Topic: Refi to roll in higher interest debt?  (Read 76 times)

Easye418

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Refi to roll in higher interest debt?
« on: November 07, 2018, 01:17:03 PM »
I'll keep it brief.  I think I know the answer but want to ask to make sure I am looking at this correctly.

Mortgage:  Rem. $298K @ 3.75%, 28 years left, Fixed, house worth ~$380K
Home Loan: Rem. $29K @ 6%, 18 years remaining, Fixed.

Spoke with my lender yesterday,  no cost refi 30 year @ 4.875%. 

My gut is telling me not to refi and just power through the loan.  I think I can pay it off in roughly 3 years.

Mortgage @ 3.75% - ttl cost $496,830
Home Loan @ 6% - ttl cost $49,864

Mortgage @ 4.875% - ttl cost $622,984

So by refi-ing, I will actually spend $76K more over 30 years and save about $14 dollars on Payment?  Pretty much I would be a fool to do this?

Thanks!