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Using Line of Credit to pay off Mortgage

17K views 12 replies 11 participants last post by  RetireYoung 
#1 ·
Has anyone used their line of credit to pay off some of their mortgage?

My mortgage right now is 3.85% for 5 years fixed. I've got 3 more years left of the 5 year term.

My line of credit is prime +1. I think prime right now is 1% right?

Can't I use my line of credit to pay off part of my mortgage?

Does anyone have any thoughts? Pros/Cons? How can I do this safely?

Thanks!
 
#11 ·
Nice Marina!

We got about the same rate in December 2010.

I'm still kinda kicking myself with the 5-year term, we could be saving quite a bit more with the variable. Still a good rate (fixed), but I've learned nobody has a friggin' clue where rates will be; might as well get the lowest rate whenever you can. Lesson learned.
 
#13 ·
I had my HELOC rate at TD Bank reduced from Prime+1% (the rate than most banks unilaterally increased their rates to, justified by the low interest rate environment). They reduced it to Prime+0.25% about 3 months ago. I tried hard for Prime+0% with my good credit and history at the bank, but this was the lowest I could get. The main point is that there are better deals to be had on HELOC rates than Prime+1% (where many people are at today) and even better than Prime+0.5%.
 
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