Although, that does sound like a good plan on paper, I would be careful. Many HELOCS have a limit on the number of transactions that you can make, so I would make sure to know what that number is, or you might be charged a fee for the excess transactions. You also need to keep a close eye on the your HELOC as you will be using it to fill in the shortfall that you are facing each month (you might use up all of your available credit). This plan is not going to help you in the long run, or when you have used up the available credit in your HELOC.
You might want to consider refinancing your mortgage and your HELOC into one fixed rate loan in order to reduce the monthly payment so that your rent can cover that payment. When considering a refinance, always look at the total cost involved. Consumers usually refinance their loans if the new rate they are getting is at least 2 percentage points lower than their current rate, but that might not be the case all the time. Before you can determine whether or not a refinance is a viable option for you, you need to determine how much refinancing you home will cost. Refinancing your mortgage can be a very expensive process, as closing costs, appraisal fees, broker fees, penalties, etc., can quickly add up to well over $10,000, or even more. First, you need to contact your current lender to find out if any early refinance penalties will be charged, and when you can refinance without penalty. You should then contact several different mortgage lenders to discuss the loan terms they can offer you based on your current financial situation.
If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the Bills.com Mortgage Loan Savings Center and find a loan that meets your needs. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened lenders contact you to discuss the refinance options available to you. These lenders should be able to tell you the loan terms available to you based on your current financial situation, and tell you if a refinance loan can help save you money over your current loan.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/
Loading more commentsSince you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
We get a lot of comments! To help us show our boss that this is a valuable service, so we can keep providing it, we ask you to do 2 things before commmenting:
Log in
Like us
Submit your comment!
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
Thank you for your comment. Your comment will be posted shortly.
No Comments