A home equity line of credit can be a flexible method of paying for consumer goods and services. “Home equity goods can be used for many purposes, including home improvements, college tuition and car purchases,” according to the Federal Deposit Insurance Corporation (FDIC) web site. Having two monthly mortgage payments might cause a financial burden. Explore options which can help repay your home equity line of credit faster.
Employ capital on your principal balance. This is the simplest way to pay your loan off faster. Send a separate payment for your loan servicer, along with your payment. Advise your loan servicer to allocate the extra payment toward your principal balance.
Proceed to the Quicken Loans website (see Resources) to see options for refinancing. Assessing your home equity line of credit with your primary (first) mortgage may be the fastest way to repay your loan. A mortgage consolidation may combine both your mortgage . Typically you will save money every month because the rates of interest on first mortgage loans are lower than the rates on second mortgage products. Apply for a refinance to consolidate your loans.
Review options with mortgage lenders for refinancing your home equity line of credit. Securing a better interest rate on your house equity line of credit will decrease your mortgage payment. Apply the monthly obligations toward your standard payment to complete your loan faster. Submit a loan program to refinance your credit line.