Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Can you refinance an equity line on your house?
Can you refinance an equity line on your house?
Alyssa Rakovich:
expert info »
Yes. Usually equity lines are established at plus or minus prime [rate] [the lowest interest rate on bank loans, offered to preferred borrowers. From the glossary to Building Wealth: A Beginnerís Guide to Securing Your Financial Future, Federal Reserve Bank of Dallas]. Usually banks charge a fee to close out an equity line before a certain period of time. If one bank offers a more competitive equity line rate you can get it in writing and submit it to your current lender to see if they will match it. Refinancing may cause closing costs or fees. Be careful and get lots of information.
Jeff Kyle:
expert info »
This would be a question for a mortgage planner. Just be aware of ALL costs in refinancing. Be sure the reason youíre refinancing is worth it.
Anne Delle Donne:
expert info »
Yes you can change the structure of your HELOC (Home Equity Line of Credit) to a fixed rate etc.
Laura Rogers:
expert info »
Yes, it is a separate mortgage. You can shop for a new second mortgage with any lender. If you were not charged closing costs when you took out the equity line, you may have to reimburse the lender for those fees when you close the new loan though. Call your institution and ask if there are fees associated with refinancing.