In article <e29ccc85.0412051017.5df01d45[at]posting.google.com> , Rob B
<bertbarndoor[at]hotmail.com> wrote:

- quote -

It is extremely rare to see a mortgage company willing to
renegotiate a mortage. Most mortgages are packaged up and sold
on the secondary market. Even if you can redo the mortgage,
that would most likely involve some type of closing and new
closing costs. The home equity line of credit is normally free
of all this stuff, you just sign and spend.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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This should be a fairly simple question. I need about $50,000 for
school tuition.

I have a variable mortgage on my house which is prime less .75%. The
best secured equity line of credit I can obtain is prime plus 1%.
Just considering interest rates, from the surface it would appear as
though renegotiating the mortgage to extract equity would be the
better way to go, with 1.75% interest rate difference in my favour.
(Prime - .75% vs Prime + 1%)

However, if I don't plan on taking the rest of the mortgage term to
pay off the mortgage (I'll pay it off early), isn't my effective rate
of interest going to be a lot higher as mortgages shift more interest
to the begining of the term vs the end? (My term is now 22 years left
to go.)

Thanks for any help.

-Rob

Better way to borrow? Renegotiate mortgage or equity line of credit??