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Equity Line Of Credit Refinance Low Mortgage Rate Equity


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Would it be better to continue to pay on our Equity Line of Credit & our Mortgage or to refinance for 1 loan?

Our interest rate on Mortgage is 5.87%, but we have a variable rate currently at 7.5% on the Equity Line. Now that we have exhausted the Equity Line we are having trouble carrying both payments. Will the payment be lower if we combine the loans and refinance?


obviously if you could refinance into one fixed rate loan the 1st and 2nd that would be your best bet, is it possible is another question?

most important factor will be the equity in the property versus the note value of both the 1st and 2nd if you have at least 20% equity over the notes you should be OK with good credit

anything else without knowing the facts you may not be able to refinance the whole

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Mortgage Refinance or Home Equity?

I have some home repairs in the near future and am wondering whether it is best to go with home equity line of credit or just refinance on my mortgage. The home is a recent purchase so the mortgage rate would probably not be any lower. I'm leaning toward the line of credit because I also work for a company that is going thru some restructuring and figure having a line of credit available is some security if I find myself out of work. What is your vote... line of credit or refinance?


How much are you borrowing?

If you exceed $100k, home equity loan interest would no longer be deductible. Then refinance might be a better choice. Otherwise, I would agree with the first answer. Go with the better interest rate.

Best wishes.


Pay No Closing Costs for Refinancing – The Advantages of a No ...

Refinance your loan mortgage brokers and lenders have to make a living. And if they don’t charge you anything, that is not because they are doing it for “free.” They need to get compensated and they charge it to you one way or the other. Typically, they will charge you a slightly higher rate, maybe .250-.500% higher than the best prevailing rate. The higher rate will cover for all the closing cost , potential candidates have to have a loan amount of over $200k.

You always have to consider how many times you have refinanced in the past and figure out how much you have paid already. In the past two years, we have numerous clients that have refinanced their loans even only reducing it by less than .50%. Why did they do it? Because there is absolutely refinance...

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News

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Chicago Sun-Times - Dec 26, 2009

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Examiner.com - Dec 29, 2009

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If you currently have equity in your home and a very high credit score then there is a good chance that you will be able to refinance at mortgage rates near and more »
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UPI.com - Dec 30, 2009

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Bankrate.com - Dec 30, 2009

10 ways to dodge bankruptcy in 2010 Interest rates are at an all-time low. If you are fortunate to have a steady income and you still have some equity in your home, consider refinancing the
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Interest Rate Roundup home equity Rates on home equity products fell sharply this week. The average home equity line of credit, or HELOC, slipped 6 basis points, to 5.54 percent, the lowest and more »
Delinquencies Rose in November

Wall Street Journal - Dec 22, 2009

Delinquencies Rose in November The Business AgeDelinquencies on home-equity lines of credit climbed to 3.43% from 3.39% in October and 2.95% a year earlier. Home-mortgage payments at least 30 days late Equifax Data Show U.S. Consumer Payment Trends Continue to DeteriorateEquifax Data Show US Consumer Payment Trends Continue to Deteriorateall 28 news articles »