Why You Should Refinance Your Home Equity Line of Credit

Must Read

Do Your Kids Halt Your Black Friday Shopping?

Once a year stores all around the country run specials that are simply too good to pass up. The...

Benefit From Student Loan Consolidation Rates

Education is one of the most costly affair yet a very important necessity. There is always a sense of...

Canon EOS 60D, Depth of Field

Selective focusing with a wide aperture can add a lot of creativity to your images. You are telling the...
Admin
test

You got a home equity line of credit to make your home improvements. You have finished, and now your line of credit is just sitting there. A good idea is to refinance your home equity line of credit. These lines of credit tend to have some very undesirable characteristics that often cost you even more money that you would think. Refinancing your home equity line of credit can save you money in the long run. Here’s why.Most home equity lines of credit have an adjustable rateThe adjustable rate of a home equity line of credit means that you are at the mercy of rising interest rates. Should rates rise, you will find yourself making higher and higher payments each month. If you want to make sure that you get rid of that adjustable rate and settle in for a predictable payment each month, refinance your home equity line of credit with a fixed rate home loan. You will lock in a rate, and receive protection against further increases.It can be tempting to keep using that home equity line of creditWhile a home equity line of credit is not limitless, it can be pretty easy to keep spending. If you didn’t reach your limit with the home repairs, you might be tempting to take more money out. That’s money that you will have to pay interest on. Remember: the more money you take out, the more interest you will have to pay. Refinancing your home equity line of credit is much like cutting up a credit card. You still have to finish paying it off, but at least you won’t be using it anymore.Fees can be a dragWhile not all lenders require participation, some charge you monthly or yearly fees during the life of the loan. Also, you might have to pay transaction fees every time you use money from your home equity line of credit. As if paying interest weren’t enough! If you refinance your home equity line of credit you can pay off the home equity line of credit and get rid of those extra fees.Avoid the big paymentSome home equity lines of credit require a large payment at the end of the loan term. Not all lines of credit require this, but some do. You make your monthly payments, and then at the end of the term, you realize your payments weren’t enough to cover. Now you have a big payment. You can usually finance this at the time. However, you can avoid the shock and the hassle if you refinance your home equity line of credit with a regular fixed rate home loan.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Top 10 Provinces of Thailand Not to be missed for Travel

10 SuratthaniThe source of the proverbial Chaiya salted egg. Surat Thani is a province with many attractions,...

Underlight As Accent, For Power and The Main Light for Photography

Underlighting, in which fill or accent light comes from under the topic, is not widely used technique in the traditional Portraits, even though it will have...

How To Fix Overexposure As A Creative Tool, The Complete Guide

As an creative tool, overexposure is sort of underrated. What I’m close to propose could be a deliberate and well thought out technique for...

7D Mark II is Canon’s best DSLR cameras without full-frame sensor.

The expected long-awaited Canon EOS 7D Mark II are shipping in November for $ 1,799 without a lens. With a higher price tag, you...

Low key photography and How to isolate your subject.

Low key photography doesn’t depend on underexposure to make its point; the key to low key is that the majority of tones, even correctly...

More Articles Like This