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Fixing an adjustable rate

April 19th, 2006 at 07:09 pm

Okay so I said before that I own a rental property that has a first mortagage and an equity line loan. I also have a first mortgage and an equity line on my primary residence. The interest rate on the equity line on my primary residence is at a lower rate and I can increase it to transfer the $12,000 from the equity line on the rental house over from the higher interest rate equity line.......following that???? Anyway the person that helped me at the bank said that I could now "lock in" a fixed rate on the equity line for the amount of money I own on it and anything additional that I borrow against it would be adjustable. The difference is that then it sort of becomes a regular loan which means I would be paying the principal and interest...not just the interest at the adjustable rate as before. So I'm trying to figure this out....the only reason why I shouldnt do it is if the rates decrease then I am at a "fixed" higher rate....but I could always refi. The only stipulation is that I keep the loan at least 2 more years.......But I'm not sure I have looked at every angle to this.........What am I missing?????

Posted in Uncategorized | 2 Comments »

2 Responses to “Fixing an adjustable rate”

  1. contrary1 Says:
    April 19th, 2006 at 07:52 pm 1145476341
    1145476341

    stuff like that makes me crazy. I'm in the middle of wading through info re; refinancing the houses here, to make some cc debt disappear. Not sure which way to go either. I start getting too much info & I just shut down and continue on as is.......... Almost at that point here.

  2. boomeyers Says:
    April 20th, 2006 at 04:03 am 1145505839
    1145505839

    I hate my Home Equity Line of Credit! I had wanted to refinance a year or so ago when we got the stupid thing, but DH did'nt want to, hence the stupid HELOC. It has gone from 7% to 10.5% and even with paying more on the loan each month, we still have only paid off about 200.00 in over a year. It's digusting! In the "All Your Worth" book by Elizabeth Warren, she suggested paying off the loan that makes you angriest first. Not necessarily the one that has the highest interest or balance. I agree! I will pay off the piddle ones first and then hammer out this stupid HELOC!

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