"The flower is the poetry of reproduction. It is an example of the eternal seductiveness of life."Jean Giraudoux
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Be Cautious When Using Your Nest Egg As An ATM
About five years ago I moved from the ranks of being a renter to that of being a homeowner. Now, not a week goes by that I don't receive some type of offer through the mail encouraging me to refinance my mortgage, open a home equity line of credit ...
Debt Consolidation And Debt Management For Maximum Relief: Part 2
In Part 1, we discussed how debt management helps you learn how to get a handle on your finances. However, using debt consolidation and management together will provide you maximum financial results. Once you have developed good skills for managing your ...
Home Equity Line Of Credit - Finding The Best Home Equity Lender
Borrowing against the value of your home using a revolving credit account is known as a home equity line of credit. Lenders offer home equity lines of credit in several ways with either fixed or variable interest rates. Information on obtaining a home ...
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Refinancing an existing home equity line of credit can save you money on interest charges. It will also help you establish a payment plan to help you get out of debt sooner. Another benefit to refinancing is that you can get better terms, avoiding extra fees associated with a line of credit.
Get Better Rates And Terms
Getting better rates and terms on your home equity line of credit is one of the chief benefits of refinancing. With a line of credit, you have a couple of refinancing options. You can decide to refinance both your mortgage and line of credit. Overall this will provide you with a low rate, but don't trade in your low rate first mortgage for a more expensive refinance home loan.
The other option is to just refinance your line of credit with a second mortgage. A second mortgage can offer lower rates, either fixed or adjustable.
Establish A Payment Plan
Refinancing a line of credit will help you establish a payment plan. Before you apply for refinancing, calculate how much you can afford in a monthly payment. This payment amount will give you an idea of what terms to choose.
Just remember that your interest charges will be smaller than what you are currently paying. Also, the shorter the loan, typically the lower the rates are.
Find Better Terms
Tired of paying fees for such things as having a below minimum balance with your line of credit? Then refinance for better terms. Most refi mortgages don't have annual fees. While you will have to pay closing costs to process the loan, you don't have to worry about keeping a balance or paying the account off early.
However, it does pay to check. So before you sign for your refi, ask about any fees included. Late fees should be expected. Early payment fees can usually be deleted from the contract by paying a fee upfront.
While refinancing can save you money, it is important to shop around for the right lender. Ask about their rates and terms. Request loan quotes and compare to other lenders. Time spent researching financing options is an investment that will pay off for years to come.
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Paying Down $29K HELOC Balance Due in 3 YearsFox BusinessWell, I waited too long, and now my home is worth considerably less than my current mortgage and HELOC combined. I have until February 2015 to pay off the HELOC. I do not know what to do. I am afraid I will lose my home. First, relax.and more » |
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