Hi Mitch,
Thanks for your note.  I hope you enjoyed the holidays as well.  Our holidays were nice but hectic and with all the family obligations, we were not able to sit down together and discuss finances.  However, we plan to find time this weekend to talk about our loans and I’m sure we will have more questions for you then.  One thing that might help now is more numbers from you.  What are are the current rates?  If we pay points, how would that affect the rate and when would we break even?  Also for the 2nd mortgage, if it is only 63k now, maybe we should consider refinancing it into another 5/1.  Can you give me a current estimate on that?  I’m thinking that it may be worthwhile to get a lower rate and try to pay the bulk of it off in 5 years if we can. 
Thanks,
Sheila

Hi Sheila..
Excellent questions…
Let’s talk about the 1^st …With 1 point today ($6400), your fixed rate would be 6.625%….0 point rate is 7%…The difference in the Principal and Interest payment is $160 per month. That being said… It will take 40 months to break even. If you were to do a 5 year Arm on your $63,000 2^nd..rate gets better by 1 point to 6.99%….This is a small loan but it would still save you around $44 per month.
Please let me know if you have any other questions.
Have a great weekend !Thanks 
Mitch C. Jacobs