My 1st mortgage rate is %5.75 on remaining $29000.
Don’t do it. Your first mortgage is fixed. Your home equity line of credit is not. Interest rates will rise as will your LOC rate. Keep the fixed rate.
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24
Feb
Posted by: admin - 3 Comments
3 comments for “Is it good to do if I intend to use my equity credit line with current rate %5.00 to pay off my 1st mortgage?”
.1
roadhunter
You say it’s "current" rate is 5%. If it’s a variable rate, then the answer is a big NO. If it’s fixed, then yes, of course. That is, if your payment terms are structured so that you can afford to make them monthly on the equity loan if you have that large a balance.
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.2
David M
Don’t do it. Your first mortgage is fixed. Your home equity line of credit is not. Interest rates will rise as will your LOC rate. Keep the fixed rate.
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.3
two_sweetfour_words
Stay away from a Variable loan if the economy was to get better that interest could shoot through the roof, but if it is fixed go for and also pay aggressive if you can it shows on your credit as paying as agrees and paying on time and also puts you in good standing with your mortgage company.
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