nanannjen
Recycles dryer sheets
We have a second home with a $92,000 mortgage at 6 1/8%. Our HELOC is now down to 3.25% (tied to prime). We are wondering whether it doesn't make sense to pay off that mortgage with the HELOC. (This would have the added benefit of allowing us to cancel unnecessary but required flood insurance.) We plan to sell our primary residence in the next year or two when we ER (and relocate), at which point the HELOC would be paid off. We would continue to make at least our normal monthly mortgage payment to the HELOC, which would reduce principal faster due to the lower interest rate.
I know that rates will eventually go up, but it seems possible that they won't hit 6 1/8% in the next year or two, at which point it will be paid off.
Thoughts? Thanks!
I know that rates will eventually go up, but it seems possible that they won't hit 6 1/8% in the next year or two, at which point it will be paid off.
Thoughts? Thanks!