Posted on: 12th Apr, 2011 01:25 pm
We currently have 6 years left on our mortgage at 6.25%...less than 9
$95,000 in principal. We have an equity line with another institution at a "current" rate of 3.5% totaling $100,000...we have no other debt and haven't used it. Should we use the home equity line to completely pay off our primary mortgage thus saving us interest money, about 33,000 or stay as is. I am aware the prime can change and that is my concern.
$95,000 in principal. We have an equity line with another institution at a "current" rate of 3.5% totaling $100,000...we have no other debt and haven't used it. Should we use the home equity line to completely pay off our primary mortgage thus saving us interest money, about 33,000 or stay as is. I am aware the prime can change and that is my concern.
hi stormcloud,
you can use the home equity loan in order to pay off the primary mortgage and save money. you can then refinance the home equity loan for a lower rate and pay it off.
you can use the home equity loan in order to pay off the primary mortgage and save money. you can then refinance the home equity loan for a lower rate and pay it off.
Check with the lender you have the HELOC with and see if they have an option to convert later to a fixed rate loan if rates start moving up. If they do find offer this, you should be able to guarantee savings without running the risk of having a monthly payment that later gets out of hand.
Thanks for the quick advice ya'll ...will definitely investigate both options...ya'll are the best!