Asking for a reduction in Home Equity rate?

mariec99 · #1 (**permalink**) 08-01-2006, 02:28 PM

Do you know if you can call your Home Equity and request a rate decrease, kind of like you can sometimes do with a credit card company? I only used the line to pay an unexpectedly large assessment on my condo but it really bugs me and I hate that the interest rate keeps creeping up.

Ima saver · #2 (**permalink**) 08-01-2006, 02:30 PM

I don't think so!

34saving · #3 (**permalink**) 08-01-2006, 03:09 PM

You can ask . . . If you don't have any early closure fees you could find a competitor with a lower rate and see if they'll match it.

autoxer · #4 (**permalink**) 08-01-2006, 03:44 PM

You would probably have to refinance it to get something lower, but with the prime rate going up, it may be tough to find a better rate. And refinancing will cost money. If it is a variable rate HELOC(line of credit), you may be able to refinance it into a fixed rate HEL(loan), or if you have sufficient equity in your home, you could refinance both mortgages into one loan.

What is your current rate?

I just found an article that you might find interesting: '5 ways to tame your line of credit'

mariec99 · #5 (**permalink**) 08-01-2006, 04:07 PM

It is at 9.9%.

Autoxer -- is it possible to refince just the HELOC and not your regular mortgage, too, at the same time?

autoxer · #6 (**permalink**) 08-01-2006, 04:46 PM

Quote:

Originally Posted by mariec99

It is at 9.9%.

Autoxer -- is it possible to refince just the HELOC and not your regular mortgage, too, at the same time?

Yes, you can just refinance the LOC. Keep in mind, if you refinance it with a fixed HEL, then you may have a higher minimum payment, because that requires you to pay more of the principal, where a LOC may have an interest only option. With excellent credit, you may be able to get a rate that is 1 - 3% lower, but it may not be worthwhile after you factor in closing costs.