I have $5k left on a primary mortgage at 5.375% interest. I have $155K debt on a HELOC at a variable 3% rate. The total line of credit approved is 200K. 3.0% APR. No penalty for pre-pay. Can lock into a fixed rate at any time. 10 year Draw period ends in 2016.
Does it make sense to refinance to get a lower fixed rate and switch the HELOC to a fixed rate?
One goal is to lower monthly payments. Currently am paying additional principal of $375 month on HEOLC.
The home is worth $350K. FICO score is 739. Plan to stay in home long-term (25Yrs. +). Country =USA
I'd really appreciate some guidance and expertise about this before approaching bank.