Posted on: 28th Aug, 2010 06:03 pm
What would make more sense: Paying $10,000 to bring down the principal of a $48,000 15 year mortgage at 5.5% with 8 years left and a principal monthly payment of $605.00 or applying that $10,000 to bring down the balance of a HELOC loan of 34,600 with a 2.25% adjustable rate and a $250.00 montly payment?
Hi BRD,
In my opinion, it would be a good option to pay $10,000 to bring down the principal of a $48,000. You have better and affordable terms for the HELOC. In that case, if you pay off the first loan, you'll be liable for paying off a lower amount and can build equity in your property.
Take care.
In my opinion, it would be a good option to pay $10,000 to bring down the principal of a $48,000. You have better and affordable terms for the HELOC. In that case, if you pay off the first loan, you'll be liable for paying off a lower amount and can build equity in your property.
Take care.