Chosen by Asker

Yes you can do what your proposing but why would you? The interest rate on a first is going to be lower than the rate on the HELOC and will be fixed for some period of time up to 30 years... A HELOC is going to start at prime (8.25%) and being an investment property have a hefty margin on top of that rate. When you pencil out the numbers I will bet you that a new first to 80% (or higher if you can get it without MI) will cost you alot less per month. Also, anyone who claims that they can get you a lower payment than your option arm payment (minimum payment only) is not telling you the truth. When you refi into a fixed or interest only product you are going to see your payment increase since your paying principal and interest or at a minimum the full interest payment due. There is a possibility that you can get a new HELOC at a lower rate than your paying on your existing one but again, in the long run your will be shorting yourself thousands by doing your loans this way. HELOC's are adjustable and interest only. Your not making any headway on it buy only paying the minimum due and if the fed raises the rate then your paying even more just to stand still. If you would like to discuss your situation please feel free to drop me a line. Kevin 949-375-2380 kruorock@firstratelending.com

Source(s)

Loan Officer, Mortgage Specialist

by Mudisfun

3 years ago

Asker's Rating: