Consolidating mortgage heloc
While complicated and filled with exceptions, many taxpayers will no longer be able to deduct the interest they pay on Home Equity Lines of Credit (HELOCs).
Over the past 20 years many Americans have used HELOCs to consolidate credit card debt, pay college tuition and more--all while being able to write off the interest.
Be sure to discuss your credit profile with your lender before you opt to close the line out.
The fine print of your HELOC should state a maximum possible interest rate, but if your current interest rate is 6% and the maximum is 20%, that information isn't going to be very comforting.
Interest rates also affect your long-term total borrowing costs, not just your monthly payments.
These higher loan limits potentially could assist in refinancing HELOCs into first mortgages.
You may have heard that a home equity line of credit (HELOC) is a convenient, flexible and low-cost way to borrow money.