In article <9f555eda.0404061256.230cae06[at]posting.google.com> , Peter R.
<parwarp11[at]aol.com> wrote:

- quote -

I don't have a problem with this plan. I do think that the fees
are too high. Shop around. You might be able to find a H/E loan
with no fees, especially since they will be in first position rather
than being a 2nd.

The risk that you run is that interest will spike up. Now that
President Bush has solved the unemployement crisis, look for
interest to move up a few points before the end of the year. He
has to make the older folks living off of interest happy so they
go out and vote for him.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================


======================================= MODERATOR'S COMMENT:
John has subtly woven a political comment into his message <grin> ; however, as we get into the political season all are requested to remember that alt.politics is the place for political commentary. -HWW

I currently own my home with 2 mortgages. 158K on a 30yr fixed [at]
5.875% and 13K on a HELOC [at] Prime + 1%.

I am defenitely selling my home by year-end to move into a new house
that is being built.

It has been suggested that I refinance and move the entire debt onto a
HELOC for say 200K (using only 171K) which I can obtain at Prime -
0.8%. There would be about $500 in closing costs and a $250 fee for
closing the HELOC beore 2 yrs time.

I currently pay about $830/mo in interest on the two loans. The
intrest only payment on the big HELOC would be around $530/mo.

Is it wise to pay that interest only (or some principle if I choose
to) through year-end until I sell the house and save on the interest
cost? It would seem to be, just not sure if there are drawbacks I am
not considering.

Opinions?

Thanks.

Pete R.