Combining first mortgage with home equity loan
We have our first mortage (original 30 yr fixed) almost paid off. We owe $35,000 and send $1,000 a month. We cut the loan down to 15 yrs. We also have a home equity loan (fixed) which has $40,000 at 7 1/4% fixed. We have about 4 yrs left on this loan.
We need to do home repairs to prepare to sell the house. The repairs will cost approx $50-60,000 (guessing). My husband is in his 70's and still works. He retired from his full-time job after 30 yrs and started his own business. Our income has been cut in half. We need to sell the house we've lived in for almost 40 yrs.
Would it be better to take out a new First Mortgage and pay off the other two and have one payment? We don't want to use his savings to pay for the repairs...or should we and just keep paying the mortgages. We were thinking it might be better to combine all the money into one First mortgage.
Any thoughts would be appreciated.