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HOME EQUITY LINE OF CREDIT

By Terry Savage on April 02, 2021 | Housing / Real Estate

My mom passed away Sept 2020. I am a “Grantor” on her Home Eq line of credit. Since I have to pay this monthly (I can’t afford a full payoff) does it make sense to make additional principal payments along with the monthly payment due? And by the way, it seems the amount due is actually the same as the finance charge. I am now living in the house that she has the line of credit.

Terry Says

Have you talked to the bank that issued this line of credit? Did you ask if you qualify to refinance this into a mortgage, since you are now the owner of the home? (And I’m presuming title passed to you along with the loan!??)
Do you know the interest rate on this line of credit? Ask them!
And if they don’t offer to refinance at a rate of under 4.5%, go to another bank or go online to GuaranteedRate.com and ask about qualifying for a mortgage and paying off this line of credit.
I have a funny feeling you are paying way too much! Please write back and let me know what happens.

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