KJ asked:
I bought a lot and plan to get a house built in 5 years. I dont like the current loan, 6.25% fix rate for 3 years but interest only. Is it a good idea that I use “home equity line of credit” 4.75% at this moment to pay it off?
Sue
I bought a lot and plan to get a house built in 5 years. I dont like the current loan, 6.25% fix rate for 3 years but interest only. Is it a good idea that I use “home equity line of credit” 4.75% at this moment to pay it off?
Sue
Carla
You were fortunate to get any loan on unimproved land, especially at a rate of 6.25%. A Home Equity will probably be impossible to get unless you have a house or condo, with enough equity to more than cover the loan. Also, at 4.75%, it must be a variable rate line of credit. Interest rates are cheap right now, but they will rise, and you might wind up paying more than 6.25% in a couple of years. Your present deal is probably the best you are going to get.
Comment by john m — September 1, 2010 @ 1:25 pm