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Query: Equity Line payoff for lower rate?

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biffwilliams
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Query: Equity Line payoff for lower rate?  Reply with quote  

I'm trying to refinance... should I pay off my home equity line of credit in order to get a lower rate. It would wipe out 1/2 my bank account. torn, please advise.
Post Thu Aug 18, 2011 3:17 pm
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coaster
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Numbers, please.

~Tim~
Post Thu Aug 18, 2011 4:22 pm
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littleroc02us
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One question would be, "Do you want to pay off the amount you borrowed against your equity, or do you just want to keep raising your debt?" Personally I would wipe out the home equity loan and then refinance and get to work on paying off the mortgage if you have no other debt.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Aug 18, 2011 4:33 pm
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biffwilliams
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littleroc02, I don't understand your questions.
I am refinancing, but have a 2nd loan (HELOC). It's my understanding that because of that loan, I can't get the best rate.
The loan is for $25k and it would wipe out 1/2 of my savings/checking.

I'm just trying to get the best rate lock on my refi so my payments are lower. I'm just paying interest on the 2nd loan right now, so you can see the appeal of paying that off.
Post Thu Aug 18, 2011 6:27 pm
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littleroc02us
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What I mean is where is your mindset on these loans after your refinance them? A home equity loan isn't something I would want to keep around very long because it's money you borrowed against your house and isn't a home mortgage.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Aug 18, 2011 8:03 pm
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