The effort of creating monthly mortgage funds has prompted many owners to contemplate refinancing their 1st and 2nd mortgages into one loan. While combining both loans into one mortgage is convenient, and may save you money, homeowners should weigh the risks and advantages before choosing to refinance their mortgages. Moreover, refinancing your mortgages might end in you paying private mortgage insurance (PMI). To avoid paying personal mortgage insurance coverage, homeowners might consider refinancing both mortgages separately, as opposed to consolidating each mortgage loans.