Credit Equity Fixed Home Line Rate

I am asking because I am really nervous about applying for home equity for a roof starting very soon-probably next week.
My roof is leaking.

My credit union is currently charging anywhere from 6.5 percent for a 5-year loan up to 7.25 percent for a 20-year loan. You should probably check with whatever bank you're planning to borrow from, since I'm sure rates vary from one part of the country to another.

You might get the best rate if you try the bank that you currently have your mortgage with, especially if you explain why you need the loan. It's in their best interest to make sure your house stays in good shape.

2008-03-03 12:55:48 by happydawg

Some Ways to Lower Your Home Equity Line of Credit Rates Owning a home must be the most precious property that someone can possess in most peoples ...

Maybe. You would have to refinance you existing mortage, then pay off you HELOC. Unless you can get a loan with NO closing costs at the same or lesser interest rate, ti doesn't make sense. It might take you 10 years to break even. Since you can use the interest from both loans as a deduction on your taxes, it doesn't make sense to me.

2008-01-30 10:19:50 by Dominic R

I used to live in this house but now it's a rental, I currently have a $32,000 line of credit at an adjustable rate, can I refi and get a good fixed rate or would I pay more because it's a rental now?

You were supposed to change it when you moved. Yes, you can get a fixed rate, but fixed rates on income property is higher then owner occupied.

2009-06-14 11:29:19 by Luke

My 48 y/o sister has asked me a question and I don't want to give her bad advice. Here's her question and her stated financial info:

Should they pay off balance on their 8.25% (prime for life) credit card (with a long and excellent credit history) and put that balance towards their home equity loan? Both have high FICOs.

They currently have a 1st mortgage of $200K fixed at 4.25% until 5/09. They also have a fixed (locked in) rate of 7.65 on their home equity line at a 10-year term with a current balance of $50K ($18K avail). Their home is worth between $550-580K. They only have one credit card they use, but it's $12K (prime for life) currently 8.25% and she makes at least double the monthly payments in an attempt to pay down. They would like to eliminate the credit card debt if possible to be able to save more and not feel so stretched each month. Plus one teen now needs a car (more outflow).

Banker will lock addt'l draw and combine both for 7.6%. Yearly income $90K. Advice?
Forgot to mention that mortgage is $1375/month, she pays $700 on equity loan (min $685), and she pays $700-1000/month down on the credit card. If CC was eliminated, the banker told her the new lock on the equity loan would make that monthly payment $763, which she could also pay more down on with no penalty. She's really nervous about fooling with the equity in the home because of their old(er) age. Should she keep things as is and pay down aggressively or transfer to current home equity or other great idea? Thanks again.

That Home Equity Line is almost maxed out. I wouldn't recommend transferring the credit card balance to the Equity Line at this point because that only ties up monthly cash flow. Because they'd be paying back interest and principal over that 10-year term on the Equity vs. a couple % on credit card balance of minimum monthly payment it wouldn't be worth "saving" .6% of interest on the balance. There's also the inherent risk of running up the credit card balance again which would put them in a very tight situation.

I think in this situation what they're currently doing is fine. Keep focusing on paying down that credit card debt though and keeping the balance from growing instead of shrinking.

Good luck.

2007-09-06 12:27:31 by Bella

I have a fixed rate home equity line of credit on 64,000. With the lower rate on variable. Is it worth switching over? The fixed rate is at 7.3% and the variable rate is at 4.8%. I would save around $133 a month. I would apply the savings to the principal. Or is there any way to get a lower fixed rate?

You can try, but banks aren't lending and if the value of your home dropped significantly, no bank may touch it.

As for fixed vs. variable. Due to the upcoming huge devaluation of the dollar and inflation (it is coming) are going to force the feds to start raising rates.

Within a couple years, I think we will see interest above 5%. Which would shoot your variable up past 7.3%.

Instead of trying to refinance again, why don't you just try cutting back every where else and paying down the debt faster. That will mean extra savings sooner.

Or, there is always the old fashioned way of taking another job, extra shift to earn the extra money. You are only talking about a hundred bucks. I can make that in one weekend a month.

Good luck

2008-10-10 06:47:35 by toddrws