HELOC vs 30 yr Fixed Mortgage

[kumarmenon]

Hi

I was wondering what peoples opinion was on HELOC versus 30 yrd FIXED..

I have remaining balance of 140000 on 30 yr Fixed Mortgage for 6%.

I got an offer from a bank which gives a floater loan for same amount for Prime Rate - 1.126. i.e 3.75% I am planning to pay of the full balance by 2 years.

Do you think the HELOC is worth taking the risk in these times

Regards

Kumar

[jIM_Ohio]

If you can pay off the loan in 2 years, I think that reduces your risks considerably. If you were to maintain a 30 year payment, I would stay fixed, but with a short time horizon, the lower rate saves you considerable money.

[b4freedom]

Is this a teaser rate?. Find out the details first. And, you’re a thousand % certain you’ll be able to pay off your loan in 2 years?