Really stupid question about refinancing

[adamak]

I have a Home Equity Loan with about 8.65% right now. Should I bother with refinancing? And if so, how do I proceed? Should I call the lender? Is the refinancing of HEL the same as a mortgage?

And how much is the closing cost? The amount we currently have is quite high. I just don't know if I should bother. Seems lots of work.

 

[bsnyder]

adamak,

I'm a banker and I do a lot of home equity loans for my customers.

The rate is going to be affected by the length of time of the loan, and the credit risk of the borrower (credit history, loan to value and debt ratios.)

Without knowing your particular situation, I'd say you're probably paying too high of a rate and it would benefit you to look into refinancing.

The closing costs on a 2nd mortgage (home equity loan/line) should be minimal.

If you want to discuss the specifics of your situation and have me recommend a strategy, I'd be happy to help. Just PM me.

 

[Buckalew]

OMGoodness... what service. I'm telling you--what a place this is!
Cool post, Bet!

 

[bsnyder]

Buck, if only I could do morgages all the way in NY! I'd be happy to help, and get some new business too!

 

[Buckalew]

Well, I know you can't actually do it but hey, the advice for those of us who don't know about all that stuff is so helpful. Your still tops with me!!

 

[adamak]

Bysyder, I just PM you. Why can't you do business all the way up here in NY? You've got mine!

Thanks for any advices, in advanced.

Don't you just love this board? It got all the answers.

 

[DocRafiki]

Yep, instead of Asking Jeeves, I Ask DIS.