DEAR BOB: Is it a good idea to refinance my residence with a home equity loan? --Miriam G. DEAR MIRIAM: You raise a fascinating question. If you have a high-interest-rate mortgage with a small balance, you might be smart to obtain a home equity line of credit (HELOC) for a larger amount and use part of that money to pay off the old mortgage. Purchase Bob Bruss reports online. That's what I did a few years ago. I had an old $15,000 first mortgage on my second-home condo at 9 percent interest. The condo's market value was about $175,000. Wells Fargo eagerly approved a $100,000 home equity line of credit at the prime rate. I used $15,000 of that amount to pay off the old mortgage and had $85,000 remaining on my line of credit. I saved interest and it's nice to have that credit line just w...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.