Home equity loan Vs 15 year Refinancing
Hi Terry- I currently have about a 20 year home mortgage at a 4.00% fixed rate on my house. I’m married and currently employed/ working at my job for 25 years. I’ve worked really hard to reduce my credit card debt to Zero and I have pretty good credit now. I’m 54 years old with a 401k plan with only 6% contribution right now. My house needs some repair and i do have some equity available. Recently i’ve only been able to add $100 dollars to my principle balance monthly but i don’t think that’s enough. I’m trying to decide if i should take out an equity loan or do a refinance for 15 yrs with a $20,000.00 cash payment. I know the rates will be going up in the spring so i would like to see if i can get it down to 2% or 3% instead. I don’t have any savings right now but I feel this is the only time i would be able to take advantage of these low rates and get the repairs done. Can please let me know your thoughts? I really appreciate your response.
Terry Says
Whew — you waited a few weeks too long! Rates have already started to rise. The last thing you want is a home equity loan — which could float higher with interest rates. But maybe you could refi to a 15 year mortgage and get your rate down closer to 3% — AND take some money out in the refi process. Let me give you a shortcut. Contact Leslie Struthers at Guaranteed Rate (Leslie@rate.com) — Use my name or not. But she can get it done for you if anyone can. Don’t delay.
