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Should I refinance to pay off Equity line and lower my rate & monthly output?

I am in 15 yr fixed mortgage at 5.75%, only 7 yr left. pmt is $1660. (including taxes/ins) plus I have an equity line 34k I believe is a variable rate approx 5-7%, with a montly paymt of $160 min that never really moves the loan down.  should I refinance, lower my mortgage rate, and payoff the equity line with cash out? My current mortgage remainder amt 78k, value of home estimated 250k.  I would like to keep a loan 10 years OR less. 
  • September 13 2013 - Westover Hills
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Answers (4)

Don't do an ARM!  Look at a ten year fixed rate refinance covering both loans.  The rate is low and the home will be paid off completely in ten years.  Pay a little extra each month and have it paid off in seven years.

Call me, I can help you.  Many great lenders to choose from with very competitive rates.

Don Hayes, NMLS #883577
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  • September 13 2013
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Running the numbers for you is really the only way to say definitively yes or no. I certainly would never suggest an ARM in this lending environment, you just do not save enough to shoulder the potential risk in year 7-10, in my opinion.
Most lenders on Zillow are happy to run some numbers for you without charge or obligation...including me!!
Best wishes, Jim
  • September 13 2013
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first do you need the equity line? If not you may want to look at a loan with a 10 year term.  Your payment would go down depending based on current rates. You have plenty of equity to get enough cash to pay of your home equity loan and still have equity in your home to use at a later date or if you have and emergency. You will want to get together with a qualified mortgage professional and look at your specific situation, for cost future planning etc.
  • September 13 2013
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Yes, I'm surprised you waited this long! You can still get a very good rate on a 7 ARM. Please review my profile and contact me.  
  • September 13 2013
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