Home & rental prop refi
Hi Terry, does it make sense to use a low int. equity line (0 balance) to pay down a higher interest income property loan? We are hoping to refi the loan but the #s don’t really call for it, or do they?
Now have $165,000 on a 30 yr at 4.65% to a 15yr @ 4 %.
Thank your for all of your advise over the years, on GN radio & TV. Gave each of my 3 adult kids your book just so they don’t have to call me with their financial ?s The BEST!!
Terry Says
A line of credit can increase in rate rapidly –if inflation returns and rates rise. Your goal is to get a FIXED LOW RATE on that loan! And any loan that is currently at 4.65% is ripe for refinancing! Go to Quicken Loans or contact my great mortgage expert at Guaranteed Rate: Leslie@rate.com. You can use my name, or not, as I don’t get anything out of this.
But if your credit is good, andeven if this is a rental property, you should substantially lower your rate. And if you want to get it paid off, you’ll likely get a lower rate (though a larger monthly payment) if you go to a 15 year loan.
