use HELOC to pay off first mortgage?heloc...3%FIRST...5.875%

Heloc is for $200000... $60000 used already,$140000 still available,56 months left.
Balance on first is $41000 with 56 months left.

  • September 01 2011 - Atwater Village
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

HELOC's have great rates right now but it is inevitable that they will increase in the future. 

If you plan on paying off the debt quickly, you should consider a 3, 5 or 7 year fixed mortgage. Through the use of one of these programs, you can consolidate your debt into one loan with an interest rate in the 3's that is fixed for the period that you choose.

Or, you can consolidate into a 10 or 15 year fixed which will also put you in the 3's.

Doing this sooner rather than later is your best bet. Rates can only go up from here.

  • September 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for shapiroamg
I think consolidating your first and heloc would be the best move.
  • September 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You may want to look into combining the 2 loans into one on a 10 or 15 year fixed rate. The rates for heloc's will not stay that low forever.
  • September 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

How quickly do you plan on paying both liens off? It may be best to combine both into a 7/1 Arm at a rate close to the Heloc. You have a couple more years ( according to the Fed statement ) with the low rate on the Heloc but who knows where it goes after that.   
  • September 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Does your HELOC have a lower interest rate?  Is it a fixed rate or variable?
  • September 01 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.