The answer to your overall question, “should I refinance?” depends on the answers to the following questions:
- Are the second and third liens fixed or adjustable?
- Is the total amount owed 374,000?
- What type of loan is your current first mortgage and how many years old is the first?
- What type of first mortgage are you looking to refinance into a 30-year fixed?
Basically if the second and third mortgages are adjustable it would be something you should consider strongly. If you truly owe $374,000 and the house is going to appraise for $400,000, you will be at a 93% loan-to-value (LTV), which would mean you would have to pay mortgage insurance (PMI).
Will you save money with a refinance? Difficult to say without seeing firm numbers. One thing that gives me pause is your 93% LTV. Also, I am not aware of any investors who will consider a refinance on a third mortgage.
This is perhaps the only situation in life where shopping is the solution to your problem. Go to the Bills.com Savings Center and get no-cost quotes from pre-screened lenders. To learn more about mortgage refinances, see the Bills.com article, Pros & Cons of Refinancing a Mortgage.
I hope this information helps you Find. Learn & Save.
Best,
Bill
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