No. of Recommendations: 0
You have to have at least $40k in original contributions in order to be able to execute this plan. If you take out your earnings (value of the Roth over and above your contributions), you will be hit with a penalty. As for paying back to the Roth IRA, you have 60 days to return your original contributions. After that, you can only pay back $5000/yr ($6000 if over age 50). You would have to make an absolute commitment to yourself to rebuild your retirement savings.

What is the rate of your first mortgage you wish to refinance? Based on the difference between that and the new rate, will it take you more than 30 months to pay off the closing costs with the savings? If not, then you may want to shop for a better refi deal. If you haven't checked out a credit union, definitely do so before making any decisions.

Would I do this? Probably not. The lost retirement savings is significant, so this would be last choice for me. Is it that you cannot afford the mortgages or are you just trying to ease the payments? Do you have other retirement savings? How long do you have to rebuild your retirement savings? These questions may have an impact on your decision as well.

Who thinks if you can make everything work as you described, it is possible to be successful with your plan, but there is a lot of risk to it as well...
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