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Post by mom2kbs on May 17, 2024 4:44:12 GMT
I need to refinance our heloc as apparently it is an adjustable rate. I clearly don't pay attention so my question is this... will rates be dropping or rising in the next few months?
Thank you!
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Post by katlady on May 17, 2024 5:14:34 GMT
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Post by mollycoddle on May 17, 2024 10:03:55 GMT
I have read the same. Not a guarantee, but some folks seem to think that there is a good chance that rates might drop in Sept or Oct. Fingers crossed! |
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keithurbanlovinpea
Pearl Clutcher
Flowing with the go...
Posts: 4,307 
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Post by keithurbanlovinpea on May 17, 2024 12:14:17 GMT
Most HELOCs are variable rate. A fixed rate HELOC is less common and often carries a higher interest rate. You might ask if your lender will freeze your current draw into a fixed rate.
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Post by mom2kbs on May 17, 2024 18:29:58 GMT
Hi, I can freeze into a rate but need to decide when to do it. I may wait a few more months. thank you for sharing that!
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Post by chaosisapony on May 17, 2024 19:11:18 GMT
There's no one that can reliably predict this. People have been saying interest rates would drop for the last 6ish months and yet here we still are.
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Gem Girl
Pearl Clutcher
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Posts: 2,686
Jun 29, 2014 19:29:52 GMT
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Post by Gem Girl on May 17, 2024 20:13:17 GMT
There's no one that can reliably predict this. People have been saying interest rates would drop for the last 6ish months and yet here we still are. Because the job of the Fed is let a party get going, then take away the punch bowl.  |
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Post by busy on May 17, 2024 22:00:07 GMT
I need to refinance our heloc as apparently it is an adjustable rate. I clearly don't pay attention so my question is this... will rates be dropping or rising in the next few months? Thank you! Any kind of line of credit is almost always going to be an adjustable rate - usually Prime + some margin. There are lots of predatory lenders out there who sell products to people without properly educating them on the terms. Please be careful and be sure to ask lots of questions before signing any financial product document. People can end up in very very bad spots by thinking they are getting one thing and then actually getting another. |
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samantha25
Pearl Clutcher
Posts: 3,184
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Post by samantha25 on May 18, 2024 4:21:38 GMT
Yes, adjustable rates based on, crap I don't remember, but prime, maybe, it's the rate that comes out in October and your loan should say what the rate is based on and the maximum amount it can increase if you extend the current terms of your loan. For a real world example, our mortgage was a 7 year arm and would only max out at 2% above the current "rate", but locked in at the October price which was less than @q, which after 7 years was lower than what the original price was of our adjustable arm. So just because the rate will adjust, doesn't mean you have to negotiate a loan to new terms. It all depends on your equity and financial status and cost of refinance. Such as, will you stay in the home for X amount of years? Are you moving soon? Don't just assume your current HELOC needs to be refinanced
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