Will move in 5 years, best to pay off home equity loan of $15k, or combine with home loan and refinance?
Thursday, 22. December 2011
Right now my home equity loan is at 7.4%, and my home loan is at 5.35%
I am leaning towards paying off my home equity loan, but should i combine my two loans and refinance instead?
Darby Says:
Keep your cash. I’d apply for a new mortgage and tell them you want to pay off your home equity loan with the new mortgage. Depending on your credit rating and your other outstanding debts like credit cards I’d think you could do much better than 5.35 on a mortgage loan. Right now my home equity line is below 3 percent–it’s crazy.
Judy Says:
Rule of thumb from money magazine
Only re-fi if you know you will be living in the home for at least 5 to 7 years and
if you can get more than 1.93% lower interest rate.
Remember: Closing costs are a monster.
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william Says:
Would definatly combine both loans and refinance. Mortgage rates at all time low. Also the write-offs would be good on tax returns.