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Heloc

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Pressing on Guest	Posted: Sun Feb 20, 2011 11:29 am    Post subject: Heloc Like 0 Dislike 0 We owe 96k on our mortage at 5.5% (Just refinanced two yrs ago for only $399). We plan on selling the house and down-sizing to a home mortgage free in about two years. We have an opportunity for a 100k HELOC at 2.99%, no app fee, no closing costs, no early payment fee. I figured out using amortization schedules that with the same amount monthly, we potentially could pay about 5k more on principal in those two years by using the HELOC. We have excellent credit and our mortgage is our only debt. Our credit card is 7K available but we pay off completely every month. Should we be concerned about our FICO score by using all of this revolving HELOC credit, or the potential for a drastic increase in the prime rate over the next two years? What would be all the pros and cons for a move like this? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Sun Feb 20, 2011 8:49 pm    Post subject: Like 0 Dislike 0 Hi Guest, Your credit score will play a major role in getting a loan. As you've good credit scores, you'll be able to get a mortgage easily. However, if you already have existing loan on a property, then the lender will want you to pay it off and then apply for a new mortgage on a new property. In order to refinance the existing loan or take out a HELOC on it, you'll have to have at least 20% equity in your property. Thanks

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