Question by Steph T: Would it be better to continue to pay on our Equity Line of Credit & our Mortgage or to refinance for 1 loan?
Our interest rate on Mortgage is 5.87%, but we have a variable rate currently at 7.5% on the Equity Line. Now that we have exhausted the Equity Line we are having trouble carrying both payments. Will the payment be lower if we combine the loans and refinance?
Answer by CupCake
I was in the same predicament and decided to refi in order to have one payment. the HELOC is a monster with the interest compounding and no matter what I did, the principal kept getting bigger and bigger… I am so glad I refi’d in order to get the debt under control. I highly encourage you to look into it. You might not get such a great rate like 5.87 but I got 6%.
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