Home Equity Loans – second mortgage

Harley Dave asked:


I would like to know what to do about refinancing my home or if equity loans are best suited for my needs. I bought my house 3 years ago with a no down first time home owner mortage. I got a 5/1 ARM at 6.125% which will be over in 2008. I want to get a fixed rate now locked in but also would like to boworrow money to pay off debt and do some remodeling and consolidate into one payment. The property is appraised at $ 150,000 and the principal is $ 113,000 will I be able to accomplish my goal? I figure I would need $ 20,000 to pay off the debt and get some things fixed , Any advice would be appreciated.

ROYCE

toddrws asked:


I have a fixed rate 64000 line of credit at 7.57%. With the resent rate decrease the adjustable rate I can transfer it to is at 5.8%. Tuesday they may lower it .5 – 1% more. Would it be worth transfering it to adjustable rate. I would save around 100 a month on interest that I would apply to the principle. Also how long will the lower rates remain and would they increase it slowely so a person would be able to relock in at a lower rate?
right now I see a 1.77% difference. That might just up to 2.77% on Tuesday. I would save 145 a month. I would apply it to principle.

PABLO