Home Equity loan to pay off my 20% mortgage loan.?

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Am i off the mark here with thinking that i can take out a home equity loan to pay off my 20% mortgage loan? I didn't have the 20% down payment when i bought my place, so i took out a 20% loan @ 9.75% to cover that and avoid the PMI. Can i take out a home equity loan to pay this off, while paying back the home equity loan at a much lowwer rate? Or am i better off refinancing after paying my mortgage for at least a year?

Home Equity loan to pay off my 20% mortgage loan.?

Unless you had some major increases in your home equity there is no lender that will touch you. Better bet would be a credit card transfer with a low interest fixed rate until balance payoff and then put that card in a drawer and forget you have it.

Also home equity loans can cost you your home because, read the fine print, lenders can "call" the loan anytime they want. If you can't pay right away you get to move out.

Home Equity loan to pay off my 20% mortgage loan.?

if you did 100% financing , you probably have no equity to get a line of credit against. in texas at least, you can only borrow a total of 80% of the homes value total including 1st and 2nd liens

Home Equity loan to pay off my 20% mortgage loan.?

Your other issue is finding a lender that will not require you to be seasoned. That is own the home for 6 months to a year. I personally would wait to refinance. First off, I doubt you are going to get a home equity loan for under 7% so after all of the fees and expense are you really saving that much over a 1 year period. Secondly, you will injure your credit rating if you start applying for additional monies and make it more difficult to get a "better" rate in the end. Home equity loans are considered lines of credit, not unlike a credit card, as opposed to a fixed mortgage. You lose points on your credit file. Again, I don't think a 2% change in interest is going to matter in the long run.

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Home Equity loan to pay off my 20% mortgage loan.?

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