First determine how competitive your first mortgage rate is relative to where current refinance rates are. Also, evaluate how many years you have paid into your existing first mortgage. For example, if you have been making payments for only several years and today's market rates are close to where the rate on your existing first mortgage is, then you may want to consider refinancing your first. Conversely, if the rate on your existing first mortgage is substantially lower than that of current market rates and if you have been making payments on your mortgage for a period of five years or more, then a second mortgage may be a more sensible financial solution than starting over with a new first loan. Consultant with your financial advisor for an optimal decision.