Several options are available when deciding to refinance your home equity line of credit. You can opt to refinance all your mortgages into one. Or you can rollover your line of credit into a second mortgage. Available terms and rate structures also give you flexibility in structuring your payments. Make sure that when you refinance, you find the lender with the optimal financing for your selected terms.

The Decision To Refinance All Or One

While you are refinancing your home equity line of credit, it is also a good time to revaluate your other mortgage. Depending on your original terms, you may find that you also want to include your first mortgage as part of a refi. This way your line of credit refinancing will qualify for even lower rates while saving on closing costs.

But if you have exceptionally low rates on your first mortgage, then refinance your line of credit as a second mortgage. If you are undecided on the issue, request loan estimates for both types of refinancing and let the numbers tell you which is the best option.

Refinancing is also a good time to consider cashing out part of your equity. By doing so now, you save on additional processing fees for any future loans.

Available Term Options

Once you have decided on how much you want to refinance, you will also need to select appropriate terms for you financial goals. Rates can be fixed or adjustable, which affect your payment amount.

The length of your loan can be shorten or lengthened to give you a more manageable payment. But if you do decide on a short term, you may see your rates go down. You can also structure payments for every two weeks, further reducing your loan