Help! should I lock in my HELOC????
Ok – I’ve asked this before, but my father (w/background in finance) told me the day before yesterday I should lock in my Heloc ASAP because there was going to be huge inflation and and rates were going to go way up. Indeed, I called today and lock in rates have jumped from 8.6 to…
Ok – I’ve asked this before, but my father (w/background in finance) told me the day before yesterday I should lock in my Heloc ASAP because there was going to be huge inflation and and rates were going to go way up. Indeed, I called today and lock in rates have jumped from 8.6 to 9.35 – does anyone have any differing opinion on this? or is it pretty much a given that I should lock in before rates go through the roof. (it would raise my monthly payments by about $500 a month)
a heloc is a line of credit,
payemnts on helocs are usuallt interest only for the entire draw period which usually lasts ten years, and interest is only due on the part of the line that has been drawn, so if you are not using the entire line or plan on repaying part of the line back dont lock in a fixed rate, becasue by locking it in it will become tougher to payoff if you get a bonus or know you can pay it down shortly.
all the best
benjamin
Seriously. Why aren’t you paying 4% on your heloc? You should be at prime – .25% at the most.
Remember a HELOC is adjustable. Whatever rate you lock in at is only temporary. If its going to go up, its going to go up even after you lock. Besides, where are you getting 9.35% heloc rates? Is your LTV high? sunny_hong@countrywide.com