Question by JustSomeGuy: is it possible to refinance a heloc without refinancing your first mortgage?
I have a good rate with my first mortage at 4.25 fixed for 15 years. I also have a heloc that is adjustible and is at about 8.5 percent right. I would like to refinance the heloc without loosing the rates on the 1st. Is there such a thing?
Answer by Carolinahomerates.com
yep….it’s called a 2nd mortgage
What do you think? Answer below!
YES! The only thing you may encounter is a termination fee, generally $ 500.
Actually, trying to refinance your first and keep a Heloc is much more complicated. The Heloc lender would have to agree to subordinate their lien.
Are you thinking of refinancing from a Heloc to a fixed rate 2nd? Remember the Fed just cut short term rates, so Prime is already down .5% and more cuts are possible.
Absolutely! Be weary of lenders who try to tell you different. The best thing to do is to either contact the current lender for your HELOC and ask if you can refinance it into a new Fixed 2nd mortgage or perhaps they can lock your HELOC into a fixed rate. The fees are usually less if any.
You can also try a major bank or credit union. Your rate should have gone down about .50 % with the recent rate cut, but there is no guarantee that rates won’t go back up again.
Yes you can w/ a 2nd mortgage and DON’T let anyone talk you into refi-ing out of that first. I have the same exact first and I would have to be insanely desperate to give it up!
Open Book Advisors