Ask Terry Questions Refinance or equity loan

Refinance or equity loan

By Terry Savage on December 21, 2019 | Housing / Real Estate

Hi Terry
I listen to you on WGN radio
I owe 32,000 on my house I have about five years left to pay off my house payments are low
I want to put an extension on my house a Master bedroom and extra $35,000. Should I refinance for 5 years or take out an equity loan
I am 56 years old and I plan on working unit I am 68 years old. This is my retirement home as well.

Terry Says

Refinance, but try not to extend the repayment date on your loan. Maybe go to 10years max. You’d like it to be paid off sooner. But you want to lock in today’s low rates in a mortgage. A home equity loan exposes you to an upward move in interest rates –if that happens — before you pay off that loan.



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