Evaluate your first mortgage rate that you currently have and try to determine if you can lower your rate and pull cash out at the same time. If your current interest rate is going to be similar to what you currently have then evaluate the risk you level you want to take on with a line of credit.
Typically Home Equity Line of Credit adjusts with the Prime Rate, which has been low for the last few years. However, it can’t stay low forever.
I would try to determine the following for a Home Equity Line of Credit:
-How quickly can you pay off the line of credit?
-How long are you going to keep the home?
-How comfortable are you with an adjustable rate?
-The closing costs for Home Equity Lines of Credit are usually pretty low.
If you refinance your first mortgage try to factor the following considerations:
-A Safe 30 Year Fix that won't Adjust.
-Higher closing costs, which can be offset with rebate pricing from a rate above par pricing.
-Again, it depends on how long you stay in the home; you want to break even on the closing costs.
-If you have had your current 1st mortgage for a while, try to determine how much principal you are paying per month. A new 1st Mortgage means you are paying mortgage interest again at the beginning of the amortization of the loan.
There are pros and cons for both scenarios, hopefully this helps.
Sterling Savings Bank - Home Loan Division
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You may be able to do this. You are talking about a separate piece of land unrelated to the purchase?
You would need to likley go to a local bank to make this happen, not one of the big money center banks.... more