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heloc or paying off home mortgage to save on interest

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stormcloud1 Guest	Posted: Tue Apr 12, 2011 1:25 pm    Post subject: heloc or paying off home mortgage to save on interest Like 0 Dislike 0 We currently have 6 years left on our mortgage at 6.25%...less than 9 $95,000 in principal. We have an equity line with another institution at a "current" rate of 3.5% totaling $100,000...we have no other debt and haven't used it. Should we use the home equity line to completely pay off our primary mortgage thus saving us interest money, about 33,000 or stay as is. I am aware the prime can change and that is my concern. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Tue Apr 12, 2011 10:04 pm    Post subject: Like 0 Dislike 0 Hi stormcloud, You can use the home equity loan in order to pay off the primary mortgage and save money. You can then refinance the home equity loan for a lower rate and pay it off. _________________ Procrastination is the enemy of your financial success
jimgilly Community Expert Joined: 28 Jan 2010 Posts: 145 Location: USA 36.21 Dollars($)	Posted: Thu Apr 14, 2011 4:33 am    Post subject: Like 0 Dislike 0 Check with the lender you have the HELOC with and see if they have an option to convert later to a fixed rate loan if rates start moving up. If they do find offer this, you should be able to guarantee savings without running the risk of having a monthly payment that later gets out of hand.
stormcloud1 Guest	Posted: Thu Apr 14, 2011 7:56 pm    Post subject: help Like 0 Dislike 0 Thanks for the quick advice ya'll ...will definitely investigate both options...ya'll are the best!

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