[quote=moneymaker]If I take option 3b and leave the line open does that mean no early termination fee? If that is the case then I’m good and was worrying over nothing.[/quote]

Situations probably differ, but I can share my experience.

Back when I refinanced me primary, I had a $200k HELOC open that had no balance. My loan broker explained to me early on that that second line *might* make it more difficult for me to refinance. I think the issue was that even if I didn’t have any outstanding balance on it, because the credit line stays open, I could use it anytime. That was the concern from the lender. I was advised if I don’t plan on using it, I should close it to make things easier. But I wanted to keep it open, just in case (like using it as a bridge loan for rental property purchases that situation required cash, and then cash out refinance later after I closed and paying off the HELOC balance). So I just went through with it still open.

It did delay closing my loan for about 3 weeks longer than I anticipated. But in the end, my loan was approved. But I think that was because of a combination of my loan balance being relatively small versus my property value and my W2 income and my lack of debt elsewhere.

My details was.
1. Refinancing $350k from a 15 year conforming to a 15 year conforming.

2. LTV was 35-37%

3. HELOC credit line was $200k at 4% (Prime minus 0.25% with a floor at 3% and a ceiling at 8%) with no balance.

4. I think there were some addition negative factors from having a couple of rentals that were too new and couldn’t be used to count towards income.

5. My W2 income was stable for the past 6 years at the previous employer.

I still have my HELOC line open, BTW.

Question. Is your second a HELOC? You didn’t mention HELOC, so I didn’t think it was a HELOC.