Refinance Home Equity Line of Credit - Options for Paying Off a Line of Credit

Refinancing a home equity line of credit can save youBe Choosing With Your Lender
from risinginterestrates. They can also help youYour current lender will automatically strive for your
develop a payment schedule that fits yourbudgetbusiness, buttakethe time to look at other offers. The
needs. And if you consolidate your home equity loanbest way to make comparisons isto askfor loan
with yourfirstmortgage, you can save even more onquotes.
rates.These loan estimates should be based on preliminary
Options For Paying Off Your Line Of Creditinformationsupplied byyou. Don't allow lenders to
A home equity line of credit with its open terms andaccess credit report; unless you want toseeyour score
rates, makes it anideal candidate to refinance. Thego down.
easiest option for refinancing is torollover the loan to aWith loan quote numbers, look at the fine print.
second mortgage. You can choose fixed orCompare the APR foroverallloan costs, but also look
adjustableratesand terms. Closing costs will also beat the closing costs and rates separately. Ifyoudon't
minimal.plan on keeping your home or loan for more than
The other choice is to combine your home loans intoseven years, youdon'twant to pay a lot at closing,
one mortgage. Thiswillqualify you for lower rates thaneven for a small reduction in rates. Youwon'trecoup
if you just apply for a secondmortgage.the cost in such a short time.
However, if you already have a low rate mortgage,Don't Delay Refinancing
you could lose out onclosing costs and interestOnce you find a favorable loan offer, start the
charges.application process tosecure the rate quoted. With
If you are thinking about doing a total mortgage refi, it'sonline applications, your loan can beprocessedin less
best tocomparenumbers on your financing options.than two weeks with paperwork complete through the
Factor in how long you have left onyouroriginal loan,mail.
future interest charges, and possible savings.