Question by debra x: I’m looking to refinance my mortgage, I have 96 months left to pay on my existing one and i have a home equity
line of credit.Im wondering if I should just refinance the mortgage only? the mortgage and home equity together?I have an 8.25 interest rate on the first mortgage,7.20 on the equity, I was looking into an enhanced refinancing option.Also i took the equity to fix/remodel some of the house,if i add that to the refinancing I havent the money to use to do the much needed repairs,,,any help
Answer by alterfemego
Depending on your credit score and other financial considerations, you might do well (save money) by refinancing them together.
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They will not allow you to refinance a mortgage with a home equity line still open, because that is considered a second mortgage. However if you do refinance you can wrap what you owe into the first mortgage and open a line of credit at the same time, Chase will even lower your closing cost if you do a line of credit at the same time. Plus your interest rate is high, so you will do better to refinance both together, call a loan agent they will go over your options, with no hassle that you “have” to refinance.
Suggest you also do some calculations on the effect of the refinance. If you took the money that you’ll probably have to pay in fees and put that directly against the mortgage you may end up with a net savings in interest. With only 8 years to go (didn’t specify the original term) the amount of interest you are paying on the first is probably fairly low.