Many of my past clients are in a position where they refinanced their homes 2-3 years ago with the lowest interest rates seen in the past 40 years. Today, we are seeing a different marketplace with higher interest rates. Now home owner's do not feel comfortable refinancing with a higher interest rate even with a longer term to lower these payments. I totally do not blame this decision. What I would recommend is keeping that lower interest rate on the 1st mortgage and taking out a fixed rate second mortgage for additional cash out. A fixed rate second mortgage usually has a higher interest rate from 7.50-12.25% and they can be amortized up to 30 years. Banks also require a minimum loan amount of $50,000. I really don't see the value in an HELOC ( Home Equity Line of Credit), because these loans usually don't carry high fees but they are interest only and most people only pay them off by refinancing them into another loan. The HELOC if you pay the minimum payment no principal will be applied to that loan, so you pretty much will have a lien on your home until you pass away.
If you would like a second mortgage consultation contact Gary Martin at (909)717-2013 or you can complete a confidential loan application at http://www.needabetterloan.com
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