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wouldn’t a home equity loan momthly remuneration still have to be made?
Related solution post:
- Does a co-signer need to be on the title to apply for a home equity loan or a home equity line of credit?
- What is the best type of loan to get? –a home equity line of credit or a home equity loan? I want to pay o?
- Is a Home Equity Line of Credit or Home Equity Loan used to buy a second home tax deductible beyond $100,000?
- What's the difference between a Home Equity loan and a Home Equity Line of credit?
- Is it possible to add someone to the deed on your home even if you have a home equity loan or line of credit?
You can’t have a home equity loan and a line of credit on the same property because they are both considered second mortgages. If you re-finance with a line of credit then the funds from the line of credit will pay off the home equity loan and then anything left over is for you to draw against as you feel necessary. You will only have one payment.
No. What happens is that you open a new Home Equity Line of Credit and the balance you have on the home equity loan can be paid off with the Line of Credit (thats when re-financing). But I think it’s a bad idea because you already have a loan were the interest rate is fixed and you know exactly when it’s going to be paid off, as to oppose a line of credit were your interest is variable and could be paying a lot of interest. This is what you should do, keep the home equity loan, if possible re-finance (or compare rates) for a much lower interest rate. Then, if you do want a line of credit (for emergency money) then apply for a new Home Equity Line of Credit. Good Luck!!
I’m not sure why you would want to do this but if you were to get a line of credit that you use to pay off the home equity loan, then you wouldn’t have anything to pay on the HE loan.
Were you talking about refinancing a home equity loan with a HELOC? If so then it makes more sense except for the fact that most HELOCs are variable interest rates and could easily go up.