We are paying 7.5% interest on our second mortgage. We just received a home equity refinance offer from our first mortgage lender – no cost, fixed @4.5%. It is even better than our 1st mortgage interest (30 yrs @5.75%).
As LTV (Loan to value) keeps the same, it seems making sense to pay off our second mortgage using this home equity loan, while both are tax deductible.
Is it too good to be true? Any ideas would be appreciated…
I believe that you are misunderstanding some part of their offer to you.
You are saying that they are offering you a fixed 2nd at 4.50%? Fixed for how long ?
I could understand if it was a HELOC offer, but those are adjustable, not fixed. There are HELOC’s today that have adjusted to below 4%, but I don’t know of any new lenders offering them that low for new origination.
If it is true, take out the maximum amount that you can and pay down as much as possible on your 1st.
I believe that you are misunderstanding some part of their offer to you.
You are saying that they are offering you a fixed 2nd at 4.50%? Fixed for how long ?
I could understand if it was a HELOC offer, but those are adjustable, not fixed. There are HELOC’s today that have adjusted to below 4%, but I don’t know of any new lenders offering them that low for new origination.
If it is true, take out the maximum amount that you can and pay down as much as possible on your 1st.
I believe that you are misunderstanding some part of their offer to you.
You are saying that they are offering you a fixed 2nd at 4.50%? Fixed for how long ?
I could understand if it was a HELOC offer, but those are adjustable, not fixed. There are HELOC’s today that have adjusted to below 4%, but I don’t know of any new lenders offering them that low for new origination.
If it is true, take out the maximum amount that you can and pay down as much as possible on your 1st.
I believe that you are misunderstanding some part of their offer to you.
You are saying that they are offering you a fixed 2nd at 4.50%? Fixed for how long ?
I could understand if it was a HELOC offer, but those are adjustable, not fixed. There are HELOC’s today that have adjusted to below 4%, but I don’t know of any new lenders offering them that low for new origination.
If it is true, take out the maximum amount that you can and pay down as much as possible on your 1st.
