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Replies (5)
- shapiroamg
- Contributions:3058
If you took 9k out, your balance would then go to the $48k limit.
Several ways to get rid of the HELOC. Like you said, double (or more) up on the payments. If you have enough equity, consider consolidating your current first mortgage and the HELOC. Or go to a local bank or Credit Union and look into a fixed rate second mortgage wich will pay the loan off by the end of the term. I've seen terms for 5, 10, 15 and or 20 years.
Several ways to get rid of the HELOC. Like you said, double (or more) up on the payments. If you have enough equity, consider consolidating your current first mortgage and the HELOC. Or go to a local bank or Credit Union and look into a fixed rate second mortgage wich will pay the loan off by the end of the term. I've seen terms for 5, 10, 15 and or 20 years.
- Pat Pribisko, "Pat Pribisko"
- Contributions:1426
The HELOC has interest only payments. In order for the princiapl balance to go down, you need to make higher payments than required to lower the principal balance.
- Clay Branch, "Georgia Loans"
- Contributions:7836
Explained well by Shapiroamg and Pat. Since you purchased in 04, you may be able to refinance the 2 loans into one loan and eliminate the Heloc. The key to that is how much you owe on both loans and how much your home will appraise for. Can you share that information?
- FKD_GA
- Contributions:2
Thanks for the replies thus far.
Clay - I'm assuming I can't do anything as far as refinancing the HELOC. I'm in Georgia, and just in December was able to do a streamline refinance on the first only with my existing mortgage company with the 105% LTV rule. I was told when I was doing that I couldn't do anything with the second.
When I bought in '04 home was 200k. Home is now valued at about 155K and my first mortgage has about 135K left on it, combined with the second at the 39K i'm assuming i'm pretty much out of luck with doing much of anything with the second.
Clay - I'm assuming I can't do anything as far as refinancing the HELOC. I'm in Georgia, and just in December was able to do a streamline refinance on the first only with my existing mortgage company with the 105% LTV rule. I was told when I was doing that I couldn't do anything with the second.
When I bought in '04 home was 200k. Home is now valued at about 155K and my first mortgage has about 135K left on it, combined with the second at the 39K i'm assuming i'm pretty much out of luck with doing much of anything with the second.
- Clay Branch, "Georgia Loans"
- Contributions:7836
Then you should take the monthly savings from refinancing the first mortgage and apply that to the minimum Heloc payment to pay it down faster.
HELOC Help
I have an existing HELOC with Wells Fargo. When I originally received the loan upon the purchase of my house back in '04 it was for $39,000. At this point, the outstanding balance is still $39,000 but the credit line is for $48000 with an available credit of $9000.
Is the only way to get the oustanding balance down to double up every month on my payments? Can the $9000 in credit be applied towards the outstanding balance at this point and basically zero out my "credit" but reduce the outstanding balance down to $31000? Pretty frustrating as I can see where i'm making progress on my first mortgage, but not this HELOC.
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