My tax value on my home has increased. Should I refinance my first loan and add the home equity loan?


We relocated and purchased our home about a year and 7 months ago in an area that was more expensive than we were coming from. The purchase price was $239,000, we put down $14,000, and took a home equity loan of $34,000 to finance the rest of the purchase price and to avoid PMI. I recently submitted a question about whether or not to start paying down the first mortgage or the home equity loan, and got great advice, but I am wondering now that my tax value of my home has increased in January from $200,000 to $279,000 due to reassessment, (I know it wouldn’t sell for that now because we recently had comparables done in January), would I save money by refinancing my first mortgage and adding in the home equity loan so the total amount has a lower interest rate? My husband thinks we have to wait 2 years before we can refinance, and I’m not sure about that, but that would be this July. My goal is to pay off our house as soon as possible.

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3 Comments

  1. jjsgirlie says:

    Depeding on the terms of your loan, you can actually refinance as soon as 6 months. The best thing to do is to call your mortgage loan holder(s) and just ask!

  2. CALIFORNIA GOLD says:

    There should be no problem with refinancing right now.

  3. RealEsatePro says:

    Nope no problem at all.

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