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Financing -- Loans/Home Equity Loan Question



I just paid off our main house mortgage in January. We have a Home Equity Line of Credit for $42k with no plans to increase it. The current APR is 3.7648% with the corresponding APR at 4.09%. Do you know of a way that we can refinance this as a fixed rate loan at possibly a lower rate without points, fees, appraisal, etc?

I'd just like to get it paid off and be done with it.

Thanks for any info!

If I follow your question, and you simply want to refinance the house to pay off the home equity line of credit (HELOC), that is exactly what I would do.

I would suggest either at least a 15 year, but consider a 25 or 30 year, conventional mortgage, at about an 80% LTV.

Why take out more money?

Why not?  Rates are low, cash is king, when rates go up you can arbitrage the cash you have in your account with a higher CD rate which will happen in the future, guaranteed...

MOre conservative, is simply to borrow the exact amount to pay off your HELOC and simply have a conventional mortgage going forward.

How to avoid fees, points, appraisal costs?

You won't, but over amortized over 15 to 30 years, those costs are negligable.

however, you can comparison shop with various banks, credit unions and other mortgage lenders to get the best rate and lowest fees.

Good luck.

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