Is anyone here-

[Ghoulish Delight]

Originally Posted by Nephythys

I don't even know what you mean about HELOC and drawing out- I am not going to pull anything- so I am not sure what this means.

I think he's referring to your mention that the second loan would be available as a line of credit. It seemed to infer that you might use it as such.

And I guess I'm a little confused as to your goal, since you said initially "I wanted to get money out of it (if possible) to consolidate debt."

So, in the end what Alex and I are saying is, unless you need the extra $150/month as liquid cash or you need to consolidate your debt, you're better off waiting or finding other options than taking an interest-only loan for now. As long as you've got plenty of time before your balloon payment kicks in, you aren't doing yourself any favors by refinancing before the penalty period is over. The goal is to refinance as few times as you can get away with since each time you do it's going to cost you up front.