Anonymous
Post 08/07/2015 14:58     Subject: Re:Can you use a HELOC to pay off a small 2nd mortgage?
Anonymous wrote:
Anonymous wrote:What is the rate on the 89 percent portion? Has the house gone up in value? Have you considered refinancing the fill mortgage?


This. Your best bet might be to refi both of them into a single loan, depending on rates and current ltv.


Unless the new rate is a decent savings overall (meaning, you would refinance even if you did not have the $15K second mortgage), the closing costs will not justify refinancing just to wrap in the $15K. Banks will usually cover the closing costs associated with a HELOC or fixed home loan, making them more advantageous if your first mortgage rate is good.
Anonymous
Post 08/07/2015 13:20     Subject: Re:Can you use a HELOC to pay off a small 2nd mortgage?
Anonymous wrote:What is the rate on the 89 percent portion? Has the house gone up in value? Have you considered refinancing the fill mortgage?


This. Your best bet might be to refi both of them into a single loan, depending on rates and current ltv.
Anonymous
Post 08/06/2015 17:26     Subject: Re:Can you use a HELOC to pay off a small 2nd mortgage?
What is the rate on the 89 percent portion? Has the house gone up in value? Have you considered refinancing the fill mortgage?
Anonymous
Post 08/06/2015 14:56     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
With interest rates rising, and given you have 20% equity, why not do a short term home loan? For instance, PenFed is currently offering a 10 year fixed rate home loan at 4.49%. 5 years in 3.74%
Anonymous
Post 08/06/2015 13:00     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
Probably not with a HELOC, unless you can convince the lender you're going to pay off the existing second trust. It's hard enough being a first subordinate, but no one will agree to being a second.

Anonymous
Post 08/06/2015 12:45     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
Anonymous wrote:Yes we did this but w/ a Home Equity Loan (not heloc). Rates are so low that we just paid off our rental with the Home Equity Loan.


Meaning the rate was much lower than the loan on the rental home.
Anonymous
Post 08/06/2015 12:45     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
Yes we did this but w/ a Home Equity Loan (not heloc). Rates are so low that we just paid off our rental with the Home Equity Loan.
Anonymous
Post 08/06/2015 12:41     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
I assume you are trying to save interest from the second mortgage? How much are you saving if you only have 15k left?
Anonymous
Post 08/06/2015 12:32     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
Sure (of course the HELOC rate may go up if interest rates go up but you can figure out the risk/reward there)
Anonymous
Post 08/06/2015 12:24     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
and my primary mortgage is well under 80% of the home value.
Anonymous
Post 08/06/2015 12:22     Subject: Can you use a HELOC to pay off a small 2nd mortgage?
I got an 80/20 mortgage back in the day. Don't judge. I was really young.

The 2nd mortgage is at a higher percentage rate than a HELOC would be and has about $15k left on it (and I have about 100k in home equity). Can I use a HELOC to just pay it off?