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   Question    posted to Accountants on 04/18/08 05:04 PM, Ardsley, NY 10502
We own our home in Westchester, and it is worth about $1,000,000.

We have a first mortgage for about $49,000, and two HELOC accounts, for a total debt on our house of about $180,000.  

Our interest rate is 5.8 on the 1st mortgage, prime on one HELOC, and prime plus one on the other HELOC.  We have $469,000 in available credit on both the HELOC accounts combined.

Payments add up to about $1,450 per month.  In addition to that, for the past two years we have financed private college with a Sallie Mae loan over 10 months, which added $2500 per month this past year.  Sallie Mae is interest free, but oppressive.  

We expect to get out of dodge, and sell our house in 5-7 years.  Our property taxes add another $1700 to monthly expenses, but we have a high school freshman at home so it's not time yet.

We need to ease our financial burden because our income has dropped.  It's choking us to be paying for college out of pocket and dipping into equity only when desperate, so we need a better plan.  My questions:

1) Does it make sense to refinance for perhaps $350,000 all in a 1st mortgage, so that we can consolidate our debt into one loan, pay for college in full next year, and put the remainder in CDs that will come due a couple of years out when we need the money for our younger child's education?

2) Or, does it make sense to just use the substantial credit available to us and not refinance, since we plan to sell in not so many years?

3) What I don't want to do is go through another year stressing and being afraid to write equity checks, even though we KNEW we would pay for college out of our equity.  It seemed to make sense to pay for college out of pocket if we can, but it's hurting us too badly.

Thanks for any help!
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