Fed rate and Mortgage interest rate, help please.?

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Hello, here's the situation:

I currently have a mortgage of left of $159,000 at 6%. This is a 30 year mortgage, but I have been paying extra each month; and I am at around year 23. I also have a home equity loan of $25,000 at 7.25%. I am planning on paying the $25000 loan off in the next 5-6 years.

I went today to possibly refinance, she told me "Fixed rate at 5.75%, 30 years." I can either combine the two and pay that, or pay my $25,000 at what I am paying right now; and just refi the $159,000. She is charging me $2000 in closing costs. If I wait, and the rate drops after closing, I get charged $700 more to lower the rate.

Should I wait until the 30th when the Fed either cuts, keeps were they're at, or raises rates? This way, I will not have to pay the $2700 to get to that lower rate.

What do you think, please help me out. Any advice is appreciated. What impact will the rate cut have on my situation? Thank you! Tim

Fed rate and Mortgage interest rate, help please.?

If it were me, I would only refi my first at around the 5% rate range. I would ask the home equity loan to "subordinate" to my new first. If you are at year 23 why go backwards by going to 30 year and adding in the equity amount. If you get a 20 year fixed loan ( they are there all you need do is ask) and you'll pick up 3 years in time, I'm betting your rate will be below 5%, and your payment will either likely stay close to where it's at or go down a little. Don't need to pay to get a lower rate, lower rates are on the way, not by anything the Fed does, but the market will dictate that. Once you're in your new 20 year loan, attack your home equity loan, the way you attacked your first before. Talk about gaining equity!!

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Fed rate and Mortgage interest rate, help please.?

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