Asked by roger taylor  |  Submitted May 30, 2014

I have a home equity loan of $50K that is due next year. Can I refinance this loan?

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  Answers  |  5

June 10, 2014

Hi Roger:

It should be possible and you can even refinance it with a new home equity loan. My advice would be to find a competent loan officer that you feel comfortable working with and discuss it further. They will need to know some more details.

$commenter.renderDisplayableName() | 07.20.17 @ 18:56

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June 11, 2014

Roger, is the first and second were taking out simultaneously you want to consider combining them. If you want to take another HELOC a local banker may be the best option.

$commenter.renderDisplayableName() | 07.20.17 @ 18:56

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December 12, 2014

When you say " is due " - does this mean that the interest only feature is changing over to a fully amortizing payment? Refinancing or getting a new HELOC to replace this one might be possible ...but a lot goes into this question that you haven't included here .....value ? 1st mtg info ? Your income / debt etc....

$commenter.renderDisplayableName() | 07.20.17 @ 18:56

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December 13, 2014

The 'short answer', without any additional information, is YES. You can refi the loan, however, depending on the terms of your LAST loan (prepayment penalty, subordination rights, etc,) , as well as other important facts (such as lien position, subordination restrictions, credit score(s), debt ratios, etc.), it may cost you more than the refi is worth, both in the long run and short term, and in dollar terms, also.

Why are you refinancing the loan? How much is your property worth? Is this the only loan against the title? Are there any other lenders involved? Is the title clear? These are all VERY important pieces of data (as are the items everyone mentioned above) that your current broker or lender *should be* asking. If they are not, FIRE THEM IMMEDIATELY. Otherwise, this data will paint a financial picture of your current situation (as well as past and potential future), which, in turn, will very nearly DICTATE your next move, taking any guesswork out of the equation.

Will the refi be worth it? Can't say. Can you refi? Absolutely...for a nominal fee, of course. And, one more thing, don't pay more than ONE POINT - it's a fair price for both you and the broker/banker. Any more than that and you're likely being ripped off.

Have a great day and good luck!

$commenter.renderDisplayableName() | 07.20.17 @ 18:56

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August 21, 2015

Refinancing a home equity line, given adequate income/equity/credit is typically simpler and less costly than refinancing a first mortgage. The biggest reason homeowners refinance HELOCs are to avoid the accelerated payments that kick in after 5-10 years of interest only payments (often with an abrupt interest rate increase as well). Assuming you have adequate credit/income, and 10+% net equity, you should be able to find local banks/credit unions that would welcome your business. If you have late payments on the mortgages and a 540, not so much.

$commenter.renderDisplayableName() | 07.20.17 @ 18:56

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