want2wander
Dryer sheet wannabe
- Joined
- Jan 27, 2008
- Messages
- 10
Hello all,
I would appreciate some feedback on this situation. We live in the SF Bay area and have a 2nd home in Sonora, CA (foothills of the Sierras). In order to get our monthly expenses down and pay less interest, I am wondering about taking out a HELOC on the Bay Area House to pay off the Sonora House.
Here's the 411.
Bay area house worth about $950 - owe $400K @ 6.25%
Sonora house - worth about $400 - owe $ 135K @ 7.35%
We have no other debts.
We would take about $85K out of savings and borrow an additional $50K on a HELOC and pay the Sonora House off. We would then concentrate on paying the HELOC off, with a lot more of the payment going towards the principal.
Schwab has a rate of Prime -1.01% and no fees.
It makes good sense to me. Am I missing anything. Any recommendations? Thanks
I would appreciate some feedback on this situation. We live in the SF Bay area and have a 2nd home in Sonora, CA (foothills of the Sierras). In order to get our monthly expenses down and pay less interest, I am wondering about taking out a HELOC on the Bay Area House to pay off the Sonora House.
Here's the 411.
Bay area house worth about $950 - owe $400K @ 6.25%
Sonora house - worth about $400 - owe $ 135K @ 7.35%
We have no other debts.
We would take about $85K out of savings and borrow an additional $50K on a HELOC and pay the Sonora House off. We would then concentrate on paying the HELOC off, with a lot more of the payment going towards the principal.
Schwab has a rate of Prime -1.01% and no fees.
It makes good sense to me. Am I missing anything. Any recommendations? Thanks