Refi HELOC even after tax changes? (home loan, interest rate, credit, rate)

[schloss]

I had been planning to refi my home equity line of credit into a 10- or 15-year fixed, but with new tax rules can no longer itemize, so am not sure it's worth the cost. Will likely be in the house a few more years. HELOC is $100K, currently at 3.74%; home value is ~$400K. No other liens. I'm self-employed and have excellent credit. Should I do it?

[adjusterjack]

I wouldn't. I doubt that you will get better than 3.74% interest rates. At least not enough to make it worthwhile. The lenders will nickel and dime you to death and all the interest you've paid to date got wasted when you start a new loan.


If you pay $1000 per month, you get your loan paid off in 10 years and you only spend $20,000 in interest over that 10 year period.


Then your house will be owned free and clear and (I'm here to tell you) there is nothing better than not having home loan payments. My house has been free and clear since I bought it for cash almost 20 years ago.


You can use this amortization calculator and play around with other figures.


Mortgage/Loan Calculator with Amortization Schedule

[schloss]

Thanks. The HELOC rate is adjustable . . . and going up, little by little, every month.

[LMC White Collar]

Originally Posted by schloss

I had been planning to refi my home equity line of credit into a 10- or 15-year fixed, but with new tax rules can no longer itemize, so am not sure it's worth the cost. Will likely be in the house a few more years. HELOC is $100K, currently at 3.74%; home value is ~$400K. No other liens. I'm self-employed and have excellent credit. Should I do it?

Wonder why this tax was seen as a good thing to pass?