Cash-Out Refinance or Second Mortgage? If Second Mortgage...home equity loan or HELOC?

Question

My 2-family home is valued at 375K. I have 12 years and 88K on it left. My current loan is at a 4.9 interest rate. I need to borrow 220K and need it in lump sum. With todays rates being around 6.5 for a 30 year, I know refinancing is out of the question. Which would be better for me, a HEL or a HELOC? What would my payments be for 30 years, 15 years? Thanks

Answer 1

look the best interest rate you will get is a fixed rate at 30 year if you can not afford this rate, you will get crushed with a home equity or other second note, they are variable and rates are not coming down but going up, after the teaser rate period is over you are going to get whacked almost double the payment, so when looking at a home equity read the fine print, see how long the teaser rate last and figure what ever your payment is double it once the teaser period is over

Answer 2

Monthly payment for 220,000 at 6.5 for 15 years is $1,916.50
for 30 years it is $1,391.00.
I have a HELOC. At my bank it is 1 point higer than a HEC for 15 years.