Can I payoff my first mortgage with a second mortgage product?

Question: I owe about 22.6 years on my 5.625% mortgage. Balance of my mortgage is approx 226k. For home, I would like an appraisal of 440k or may be higher.

My first choice, if possible, is not only to refinance my first mortgage for a lower rate without extending the term, but also, to escrow my own taxes and insurance.

If I can’t find a first mortgage product that allows me to escrow my own taxes and insurance, can I chose my term?

If not, can I payoff my first mortgage with a second mortgage product? If I can payoff my first mortgage with a second mortgage (assuming the second mortgage rates are lower), can I pick a 20 year term if the 15 year term makes my payments higher than I want to pay? How do I find out either of these rates?

If I want to refinance for a first mortgage for 22 years, can I do that? If so, what are the rates? I can’t seem to find any rates other than 15 or 30 year rates for refinancing. Do I use the 30 year rate for a 22 year term?

Answer:
Escrows (Taxes & Insurance) conforming loans are priced based on you Escrowing – so, if they are not included, there is an extra 1/4 point assessed to your closing cost (or a bump in the rate). You wrote, “escrow my own taxes and insurance”; I gather that, you do not want to escrow, you would request an Escrow Waiver and you would be responsible for paying your own taxes & insurance and would be assessed the extra fee for your decision.

20 year & 30 year amortizations tend to be very close in price, however, 15 yr loans are 3/8% to 1/2% lower rate. A 15 yr payment would be about $239/month more than a 20 yr amortization, but, you would save about $1200 in interest the 1st year. If you can afford the extra payment, the 15 yr option is worth considering.