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I finally stopped treating my HELOC like a credit card after the rate jumped to 9.1% last month
For the last two years I swore I would never touch a cash out refi because my uncle lost his house in 2009 and that story stuck with me. Then last month my HELOC payment went from $310 to $480 overnight when the variable rate hit 9.1%, and I sat at my kitchen table in Boise staring at the statement feeling like a total idiot. My neighbor Dave, who does taxes for a living, asked why I was paying a variable rate when I had about $90k in equity just sitting there doing nothing. I ran the numbers three times because I did not believe him, but a fixed cash out refi at 6.4% would actually drop my payment by almost $200 a month and lock it in for 15 years. The part that really got me was when he pointed out I was treating my house like a slot machine with a variable rate, and I could not argue with that. I closed on it last Tuesday and honestly the whole thing took 19 days which shocked me. Has anyone else made this switch recently, and did your lender hit you with any junk fees at the closing table?
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james_ramirez8d ago
Man, that slot machine line hits home... variable rates are a trap.
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