Q: I want to apply for a 2nd mortgage (fixed rate home equity loan ) and use some of if to pay down my first mortgage.  1st mortgage interest rate: 6.6%; 2nd mortgage interest rate: 5.5%.

Is this a good idea and is this legal?

A: good idea? no – second mortgage rates are typically higher than first mortgage rates. if you find that to be untrue, then maybe it’s worth it.
With the rates that you’ve mentioned, it would be a good idea to go for a second loan. However, if you’re unable to pay off the first mortgage in full, you would be responsible for paying both the mortgage payments every month. In my opinion, it would be better if you could refinance the loan. This would give you some extra cash and you would also be able to pay off your first mortgage dues. But Should I Refinance home?

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