You Can Convert Your Equity Line To Fixed Rate
Have a floating-rate home equity credit line? It has probably risen to uncomfortably high monthly payment levels as a result of the Federal Reserve's interest rate increases over the past two years. You probably have the choice of sticking with your credit line and risking further jumps in payment or, you could refinance your first mortgage and pay off your credit line. But there is a better solution to this problem. Baltimoresun.com reports:
Most major players in the home equity arena will now allow credit-line customers to escape the Fed's rate increases and freeze their rate on a portion - or all - of their outstanding balances. Some banks will even turn your floating-rate credit line into a smorgasbord of tax-deductible financial planning choices, fixed-rate and variable-rate.
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