Is anyone here-

[Nephythys]

I am not feeling a pinch- finances are better than ever in fact (paid off my car with the tax refund). I am about to pay off two credit cards that have MONSTER interest rates.

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.

My main goal was not debt consolidation- it was getting out of the ARM Balloon loan.

[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.

[Nephythys]

Originally Posted by Ghoulish Delight

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.

Naw- I was just repeating the info from the woman at Chase. I have no plan to use the money.

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."

It was a goal- but did not work out that way based on the #'s she gave me. So no, I would not be using this for debt consolidation.

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.

I actually sent the lender a document with a lot of the info I have gathered from you guys (and others)-

I have alot of questions now- and obviously need to know more about it before doing anything more.

[Alex]

Ah, since that was the only benefit (other than monthly payment you mentioned) I jumped to a conclusion.

If you aren't hurting for the extra $150 a month and if you don't get any debt consolidation out of it, it sounds like you can relax and take your time and know exactly where you're jumping to.

Sorry, I slipped into work lingo with HELOC. Home Equity Line of Credit.