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I have an home equity loan and a mortgage.

The home equity loan is variable.
The home mortgage is a fixed loan at 5.025%., 15 years, which I have already paid 5 years in.

I would like to combine the 2 (the loan & the mortgage) into 1 mortgage without losing my rate (of 5.025).

Combined, i owe $ 170,000 and my house is worth at least $ 220,000.

I want to turn my home equity variable loan into a LOW fixed rate.

How and where do I go about doing this?
Which companies offer the lowest rate?
How do I find these companies?

Serious replies only please.
Thanks! Lorraine

5 Thoughts on Looking for low fixed rate?
  1. Reply
    February 8, 2014 at 4:38 pm

    try checking around would be my choice
    if it can be done they will find a way to get it done for you! my understanding is they dont charge yield spread so they give you the lowest rate they have!

  2. Reply
    February 8, 2014 at 5:11 pm

    you cant combine the two w/out changing the rate on the first one.

    i would look into trying to refinance the 2ND mortgage ONLY…..current rates are around 6.25%….and your refi would be a REFI CASH OUT….not a rate/term…which means higher rates.

  3. Reply
    February 8, 2014 at 5:46 pm


    You seem to have a very good rate on your first. So, the viability of re-financing and/or consolidating the 2 loans, if at all, would have to do with the size and the rate of the 2nd mortgage. These factors and the expenses of getting a new loan would have a lot to do whether you should stay with what you have or refinance.

    If it was to your benefit to refinance, your local banks or mortgage brokers/bankers would be able to help you.

    I don’t have all the info about your situation, but the fixed rate on your first is hard to near impossible to beat.

  4. Reply
    Searchlight Crusade
    February 8, 2014 at 6:02 pm

    The loan rate on the first loan is what was available then. What was available now is much higher. I do business with over eighty lenders and I don’t even have a rate sheet with 5% on it for a fifteen year fixed. If I did, it would be about four and a half points retail. You’re never going to recover 4 points of upfront cost on a fifteen year fixed rate loan, and there is always a tradeoff between the rate offered and the cost to get it. Between 4 points and regular closing costs, you’d be looking at over $ 10,000 cost to get such a loan done.

    (Yes, some lenders will pretend such costs don’t exist, but that doesn’t change the fact that they do!)

    There is no loan available today for which it’s actually going to help you to abandon that 5% fifteen year fixed first mortgage.

    That said, low cost fixed rate HELs for people with a 75% loan to value and excellent credit are around 9.125, (assuming your second is $ 25k or less) a very different situation from only a couple months ago. Alternatively, you can have prime plus about 1% on a variable rate HELOC. If you’ve got something better than these, sit tight.

    I’m sure you’ll find lots of bozos who want you to call so they can sell you something with a great payment. But that’s a very different thing from a better interest rate, and nobody can get you a loan that doesn’t currently exist.

  5. Reply
    Open Book Advisors™
    February 8, 2014 at 6:28 pm


    Please Please do not refinance your first mortgage.
    The rate and terms you have are just too good.

    You can refinance your HELOC into a fixed rate second and then put as much extra toward it as you can to pay it off quicker.

    The cost of refi’ing into a new first is completely not worth it.
    As far as the lowest rates on that 2nd -will depend entirely on your credit score, the appraised loan to value and your debt to income.

    Not an answer you can get without talking to a mortgage person.
    if you need more info…….we’re always available livechat by clicking below.

    Good Luck

    Open Book Advisors™

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