Posted By: admin | 2008.09.11
If her home mortgage rate was higher than her line of credit it makes sense. I do not have a home mortgage but I do have a line of credit on my home.
Normally you can just make interest payments on a equity line if you want. My heloc is locked for 5 years with minimum payment being the monthly interest.Sure it’s possible but why would she do that? Now she still owes money on the house but her interest rate is completely adjustable and probably higher than where it was with her first mortgage. The terms of an equity line or 2nd mortgage are never as good as a 1st mortgage.
