I have a fixed mortgage at 6.5% but my home equity loan just dropped down to 4%. Would it be legal to pay off my entire mortgage using my home equity line of credit? Refinancing wouldn’t do me any good since no one can match the 4% rate. I just want to make sure something like this is allowed and doesn’t run afoul of some federal law or banking rule.
Also, are there any cons to doing this? I’m 10 years into a 30-year fixed.