ELOC refinance point
Terry, thank you for all the information you provide on the WGN & your site. Incredibly helpful to so many. We are grateful. Question, took out a 15 yr ELOC in Oct 2023 for $55K to pay down credit card use. Loan rate at 7.89%. Working to pay down loan with a current value of $42.7K. Am 67 yrs old, spouse 63. Both still employed. At what point of interest rate is it good to possibly refinance? I hope to work up till 70 (if possible to maximize social security. Thank you for your time.
Terry Says
Well, I hope you NEVER refinance this loan, but make a priority of paying it down.
One thing to check: How much of each payment is interest, and how much is going toward principal. Ask them to come up with a new payment schedule that adds even a few hundred extra dollars — which MUST go to principal — and see how much more quickly you can pay off this loan — and how much interest you will save.
Rates aren’t dropping now, so no use looking around for a better deal. Instead create your own better deal but increasing the monthly principal payment.
