We are looking at purchasing a second home to use on weekends. The houses we are looking at range in price from $75,000 to $100,000. As I write this, mortgage rates are around 4.5%. Should we refinance our current house and use the extra funds to buy the vacation home outright, adding the balance from our savings? We owe $66,000 on our current mortgage at a rate of 6%. The house was purchased in 2003 for $90,000