by mary hodder
Question by jonathanzila: How do I know when it is time to refinance my 2 mortgages into 1?
I bought my house a year ago, and put 3% down. We took out an 80% first mortgage and 20% second mortgage. Our second mortgage is adjusting and keeps going up every month. I do not want to pay Private Mortgage Insurance, but also do not want to keep seeing my payment go up. How do I find out if I have 20% equity in the house? Should I refinance it?
Answer by gottanew1
The equity is determined by the increased value of your prop and in a year that may not be much.
Sounds like you’re just gonna hafta grin and bear it for awhile unless you can come up with differant money to cover the 2nd.
Be honest with your numbers-closing cost / commissions / etc are all part of the cost of ownership so be sure to factor in all you can when trying to determine equity.
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