Posted on: 26th Oct, 2008 05:42 pm
we just our based an investment property using a heloc (2nd mortgage on our primary residence). we are currently paying the minimum monthly payment and we have another 10 years before the draw period ends on the equity line. we also have renters who have signed a 2 year lease. with interest rates dropping due to the mortgage crisis, does itale sense now to follow our original plan to refinance the heloc with a 30 year fixed or should we just leave the line open and keep paying the minimum payment?
i'm leaning toward waiting, but i'm not sure if i'm missing something.
i'm leaning toward waiting, but i'm not sure if i'm missing something.
it would make sense, if you can afford the fixed payment, BUT an option for you is this... The HELOC's are very low right now, you can use this opportunity to pay more towards your mortgage.
My heloc started at $500 a month, now b/c of the rates lowering, it's $300... we use the other $200 to put towards principle.
My heloc started at $500 a month, now b/c of the rates lowering, it's $300... we use the other $200 to put towards principle.
Hi shmonkey!
I agree with Elnora. The HELOC interest rates are quite low now and you can use certain sum of money to pay towards the principal amount. Thus, it will be easier for you to pay off the loan.
Feel free to ask if you have further queries.
Sussane
I agree with Elnora. The HELOC interest rates are quite low now and you can use certain sum of money to pay towards the principal amount. Thus, it will be easier for you to pay off the loan.
Feel free to ask if you have further queries.
Sussane