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Home Equity Line of Credit-Used a lot of money on it!?

I need some help. We have used up a lot of our Home Equity Line of Credit and realize that it will take us forever yo repay it. I wasn’t sure if I should re-finance. We qualified for a FHA loan-6.5% interest rate and have paid in 6 years on a 30 year fixed rate.

Our credit limit on our line of credit is 66,500.00 and we have used up almost 60,000.00!

What is the best way to approach this? Also what are "points"? Do I want "points" when re-financing?

Thanks

This entry was posted on Saturday, February 6th, 2010 at 4:33 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Home Equity Line of Credit-Used a lot of money on it!?”

  1. Ed Atun says:
    February 6, 2010 at 4:33 am

    You do not want to refinance. It doesn’t solve any problems. Just pay down your equity loan. Then it will go away and you will have just one loan at a good interest rate. Each refinance costs you $5,000. The money is gone. Use that to pay down your current loan..
    The refi costs of $5,000 have many names. One of them is "points". WHich is 1% of the loan. But it doesn’t matter what the fees are called, it only matters how much they total up to..

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