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You won't be able to get a rate as low as your current first mortage if you refi, so I would not do that. Is the second loan fixed or floating? How sure are you about the value of the property?

If it were me, I probably wouldn't buy the land unless I could do so with cash, but that's me. If you are determined to buy the land, I would probably refi the second loan to something big enough to buy the land. If you are going to be tight on the monthly budget with the bigger loan, I would seriously consider a fixed home equity loan. If rats drop, you can refi again. If rates go up, you have locked in your cost.
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