Refinance Home Loan: Consider Refinancing Your Home Equity Line of Credit

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Refinance Home Loan: Consider Refinancing Your Home Equity Line of Credit
(presented by www.refinance-refinance.net - mortgage lenders)

By Louie Latour

If you are a homeowner with a Home Equity Line of Credit (HELOC) in addition to your mortgage, you may be concerned with the effect of rising interest rates on your monthly payments. These equity lines of credit come with variable interest rates that the lender will adjust at regular intervals. To avoid paying too much for the financing on your equity line of credit, consider converting the loan to a fixed interest rate.

If you have decided to convert your equity line of credit there are several ways to accomplish this. Here are three ways to convert your equity line and save money in the process.

I. Refinance & Consolidate Your Loans

The most affordable option may be refinancing your primary mortgage and equity line of credit. This will allow you to consolidate the loans to one monthly payment. You will also qualify for a lower interest rate since you are only carrying one mortgage. A fixed interest rate will allow you to budget for a mortgage payment that does not change when interest rates go up.

II. Convert to a Second Mortgage

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Second mortgage loans pay out a fixed amount in one sum at a fixed interest rate. You may have the option of converting your equity line of credit to a second mortgage. Once you convert the equity line you will no longer be able to borrow against it; however, you will have a fixed interest rate locked in. You will need to contact your lender to see if your equity line of credit qualifies for conversion.

III. Apply for a New Home Equity Loan

If your lender is not willing to convert your equity line into a second mortgage, you may be able to refinance the line of credit with another equity loan. If you qualify for a second mortgage based on the value of your home you can use the proceeds from this loan to pay off your equity line of credit.
To learn more about your mortgage and home equity options, register for a free mortgage guidebook.

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To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing: What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Refinance Home Equity Loan

Louie Latour - EzineArticles Expert Author

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Friday, October 27th, 2006 at 2:30 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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