Katja M asked:
My mother is running out of money (she is selling her house) and it is coming down to the only money she has is in the equity of her house (@$500,000). She currently has a mortgage at 7% for 50,600. She is considering a home equity loan or a home equity line of credit. I see home equity loans for about 7% and HE Line of Credits for 6.5% (quick searches that I’ve seen). Which is a better choice if she sells her house in the next 6months-1year and should she pay off her mortgage passed on these interest rates on the HEL and HELOC?
Any suggestions is greatly appreciated!
She is 69 years old…I shy away from a reverse mortgage due to the large fees that are involved in setting it up. The house is currently on sale.
Marlene
My mother is running out of money (she is selling her house) and it is coming down to the only money she has is in the equity of her house (@$500,000). She currently has a mortgage at 7% for 50,600. She is considering a home equity loan or a home equity line of credit. I see home equity loans for about 7% and HE Line of Credits for 6.5% (quick searches that I’ve seen). Which is a better choice if she sells her house in the next 6months-1year and should she pay off her mortgage passed on these interest rates on the HEL and HELOC?
Any suggestions is greatly appreciated!
She is 69 years old…I shy away from a reverse mortgage due to the large fees that are involved in setting it up. The house is currently on sale.
Marlene
Daniel
Comment by Anonymous — October 30, 2009 @ 2:01 am