Author Topic: question about refinancing  (Read 996 times)

isabelle9

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question about refinancing
« on: May 09, 2017, 08:56:49 PM »
full disclosure: i have not paid nearly enough attention to financial matters to date. too much to do. too little time. yes, you'd think that it's an important topic to pay attention to, but... trying to "save" the world instead :)
in any case.

i am refinancing my home. i have a loan and a home equity line of credit. both on variable rates, which is why i want to refinance to a fixed rate.
my question is: should i lump the 2 and get a new loan for the combined amount, or keep them separate? i don't love the idea of increasings my loan by 100k for 30 years. current LOC is 10 years.

i suspect that the answer requires more infomration about actual $ but is there a general rule?
i was originally going to keep them separate and borrow as little as possible (i have refinanced at least 4 times in the past 10 years - i know, stupid.. and done cash out to repay debt), but my bank has encouraged me to go for 140k additional (100 k for the line of credit, some $ to cover the closing costs, and extra for ??? because it keeps the LTV ratio under 80% i suppose). my bank convinced me in a 5 min conversation to do this because i would save an extra $9k linked to the LOC.
as i am really close to signing the refinancing agreement, i have doubts. i did ask the bank more questions (they are annoyed beyond beleif about me - oh well).
any advice out there?

i found this site looking for advice about cashing out to invest in the stock market. mostly not advised. thank you! :)
also, is 4.25% a good rate for a fixed rate/ 30 years?
i was stressed about starting from scratch (again) on a 30 year horizon.. but given inflation, the payments are going to get relatively smaller and smaller. small consolation.

in any case, advice about the refinance appreciated.
thanks!
isabelle