Posted on 12/05/2004 3:26:44 PM PST by mlmr
I need advice from FreeRepublic, my husband substitute. I have an adjustable line of credit which I used to build an addition. It is pegged at 2 point below prime. It has started moving up this month. When I took it out I did not realize that I would not be able to refi the loan separately from my house loan. My house loan is at 4.75 and almost 13 years left. Banks wont touch the second mortgage for less than 6.5 to 7.5.
I have the credit rating of the gods. Do you think I could find someone privately to carry this loan or will I need to refi the entire enchalada at a higher rate. I am having a tough time letting go of the 4.75 and 13 years.
Also, what would be a good stock picking magazine for a neophyte?
You had better lock rates now, cause interest rates are going TOO THE MOON!!
Have you considered refinancing the first and the second with a single 10-year mortgage? You'll be able to refi both at around 4.75%.
Yes, the payment is too high.
You should not pick up the hobby of trying to buy individual stocks IMO. It will probably prove to be a very expenseive one, particularly since given you equity line of credit balance, it is akin to buying stocks on margin. Use the money to try to pay off the equity line of credit you dislike, is my best advice.
Why do you say that?
How about a 15-year?
Live and learn.
Next time maintain a "fixed" so you always know where you stand!
I wasnt planning to buy stocks with my line of credit. I built an apartment and garage onto my house. The stock question was a separate issue.
The line of credit is over for me. I finished the apartment last week.
My 4.75 is fifteen year
Because the Federal Reserve has so stated. Short term rates are going up. Overnight funds are now 2.00% They will probably go to 4 before it's all over based on what Fed Governors are saying.
Why can't you refi it separate from the 1st mortgage?
It is really an inseperable issue. Debt is debt no matter where it is on your books. I thought you had a line of credit you wanted to pay off through a refi.
The smartest thing I ever did when I bought my home in 1988 was to get an adjustable rate loan, 2% over the 11th district cost of funds. I have saved just a boatload of interest over the ensuing years, and the rate now is still below 4%.
Because we have been debasing the currency at 8% per year for the last decade. We are just begging for a dollar crisis. Negative real interest rate helicopter money doesnt get any easier than it was a few months ago. Volker style rates will be needed to save the dollar.
I would not advise someone going on an ARM right now unless it is a long term hybrid.
Take anything extra and plunk it into a few good mutual funds.
The smartest thing I ever did with a mortgage was to buy a house (my first one) at a 12 1/4 percent rate, (thank you Jimma' Carter) and sell it at a 10m profit 4 years later.
I had no concern to what the interest rate was, maintained a bottom line attitude without outside variables and took it upon myself to reap a profit to achieve a down payment on a newly built home financed with a fixed.
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