Posted on: 20th Dec, 2010 06:43 pm
i own my home but have a home equity loan from a credit union; i am discussing refinancing the loan and line of credit with another bank; this new bank's agent is highly pushing for me to get a mortgage because the interest rates are lower for home mortgage loans.
i am confused about this. i wasn't aware that a home owner would get a mortgage in such a situation.
aside from this advice, when discussing refinancing the home equity line, she highly recommended a variable rate rather than fixed rate. why ? the rate is 5.2%
i am confused about this. i wasn't aware that a home owner would get a mortgage in such a situation.
aside from this advice, when discussing refinancing the home equity line, she highly recommended a variable rate rather than fixed rate. why ? the rate is 5.2%
hi clairecns!
welcome to forums!
you can refinance your home equity loan into a normal mortgage provided you've equity in your property. as far as variable rate mortgage is concerned, may be the rates are low compared to a fixed rate mortgage and thus, the lender has suggested you to go for it. however, there are chances and in future the rates will rise and you may have to pay higher interest on your mortgage payments. keeping this in mind, it's always better to go for a fixed rate mortgage.
feel free to ask if you've further queries.
sussane
welcome to forums!
you can refinance your home equity loan into a normal mortgage provided you've equity in your property. as far as variable rate mortgage is concerned, may be the rates are low compared to a fixed rate mortgage and thus, the lender has suggested you to go for it. however, there are chances and in future the rates will rise and you may have to pay higher interest on your mortgage payments. keeping this in mind, it's always better to go for a fixed rate mortgage.
feel free to ask if you've further queries.
sussane
the suggestion was, if I am refinancing as an equity loan, that the rate
be a variable.
thanks
be a variable.
thanks
Hi Claire not sure if you have one loan on your house or two. But if you are refinancing (and combining both loans) and planning on keeping the house, my suggestion is that you get a fixed rate.
Rates will rise in the future and so will your payments if you have a variable rate loan
Rates will rise in the future and so will your payments if you have a variable rate loan