Refinance Home Equity Line of Credit – Options for Paying Off a Line of Credit


Refinancing a home equity line of credit can save you from rising
rates. They can also help you develop a payment schedule that fits your
budget needs. And if you consolidate your home equity loan with your
mortgage, you can save even more on rates.Options For Paying Off Your Line Of CreditA home equity line of credit with its open terms and rates, makes it an
ideal candidate to refinance. The easiest option for refinancing is to
over the loan to a second mortgage. You can choose fixed or adjustable
and terms. Closing costs will also be minimal.
The other choice is to combine your home loans into one mortgage. This
qualify you for lower rates than if you just apply for a second
However, if you already have a low rate mortgage, you could lose out on
closing costs and interest charges.
If you are thinking about doing a total mortgage refi, it’s best to
numbers on your financing options. Factor in how long you have left on
original loan, future interest charges, and possible savings.Be Choosing With Your LenderYour current lender will automatically strive for your business, but
the time to look at other offers. The best way to make comparisons is
to ask
for loan quotes.
These loan estimates should be based on preliminary information
supplied by
you. Don’t allow lenders to access credit report; unless you want to
your score go down.
With loan quote numbers, look at the fine print. Compare the APR for
loan costs, but also look at the closing costs and rates separately. If
don’t plan on keeping your home or loan for more than seven years, you
want to pay a lot at closing, even for a small reduction in rates. You
recoup the cost in such a short time.Don’t Delay RefinancingOnce you find a favorable loan offer, start the application process to
secure the rate quoted. With online applications, your loan can be
in less than two weeks with paperwork complete through the mail.