(505) 836-5700

Give Us A Call

(505) 836-5700

click to call

HELOC's: Why Now is a Great Time to Refinance

Monday Nov 28, 2016
Rate this item
(0 votes)

A home equity line of credit, or HELOC, allows a homeowner to tap into their home’s equity at a low interest rate. HELOC’s are great for major expenses such as education, home improvements or unexpected medical bills. However, because HELOC’s carry a variable mortgage interest rate, when interest rates rise, so will payments.

When the federal reserve announces a .25% rate increase in December, HELOC’s will instantly be impacted. Each quarter thereafter, rates can continue to increase by .25%, so by this time next year, HELOC rates may be a full percentage higher than they are today.

Many homeowners with home equity lines of credit may have been making low interest only payments and neglecting to pay on the principle. This is a problem. With the potential continued increase in rates, homeowners with HELOC’s could realistically see their payments double or triple over the next few years.

While rates are still low, now would be an opportune time for homeowners to consider refinancing both their first and second mortgages into a low fixed rate mortgage. And if you’re a veteran, the good news is you can refinance up to 100% of the value of the home to accommodate this, and the FHA will allow up to 97% loan to value.

If you have a home equity line of credit, Indigo Mortgage encourages you to call today and see if a refinance can save you money!

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at (505) 836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in New Mexico.

Read 842 times
Was this content interesting? Please help us out by sharing this! Your 'like' will make us smile!