Mortgage interest rate is 5.625%. My home equity line of credit is just 2.75%. I have enough credit to cover the balance of my mortgage, and will certainly pay it off either way within the 10 year requirement.
What are the ramifications? Am I missing anything?
1. Is the equity line a fixed rate or adjustable?.
2. Is there a pre payment penalty for paying off the 1st mortgage?
1. Is the equity line a fixed rate or adjustable?.
2. Is there a pre payment penalty for paying off the 1st mortgage?
References :
You lower the amount of interest you pay over the life of your loan.
Is the HELOC a fixed rate, or can it climb?
Assuming there is NO prepayment penalty on first mortgage?
Borrowing Peter to pay Paul doesn’t always make sense, but may here.
References :
real estate investor