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Should I refi ?

Currently owe 212K on Mortgage. House value approx $275k. 5/1 ARM at 4.25% resets in May. Also have HELOC of $40k.

Looking to go with 15yr at around 4.5% quoted. Based on calculators Payment will wind up being same for 15yr/4.5% since at present I pay additional $400/month in principal for my 5/1 ARM at 4.25%

Can I refi primary mortage with another lender and keep HELOC separate rather than rolling it into one mortgage amount ?
  • January 08 2009 - US
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Answers (2)

You have to call the lender that holds your HELOC and ask them what their re-subordination policy is. They have to be willing to remain in second position.
  • January 08 2009
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Most likely your rate will reset pretty close to what you are currently paying. Instead of paying a bunch of points and closing costs, plus the higher payment of a new 15 year loan, I would concentrate on paying off the equity line as fast as possible to build equity in your home.


Tom O
  • January 08 2009
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