Originally Published at The Motley Fool

STRICTLY on a financial cost consideration, it depends on the loan size(s) or remaining balances, versus the minimum real costs to refinance.

You may very likely qualify for 30 FRM money on your personal residence in the 4.5% to 4.75% range. You could potentially qualify for that rate all the way up to 75% or 80% of your personal residence value, if your income is sufficiently documentable.

THUS, the advice I’d have (given assumptions that you can qualify) would be to roll your personal home mortgage, and as much of your [other debt] as you can fit under the 80% value of your 1st home, into a single new loan at a 4.5% interest rate.

You’ll be saving annually on every dollar you roll over. That annual savings will (at some relatively soon point) overcome the financing closing costs you will have incured in order to do the rollover refi and from that breakeven day forward you will be accelerating your impending “mortgage freedom” day every day going forward.

ABOVE ALL ELSE, however…. *ALWAYS* keep sufficient liquid reserves! NEVER throw safety money (6-12 months total living costs) into mortgage reduction, until you can afford to do so in one single check (and still have 6-12 months living costs left in cash.)

Luck!
Dave Donhoff
Leverage Planner