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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: paying off mortgage Date: 3/9/1999 8:59 PM
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n relation to a similar post, I have just paid off my
last mortgage payment on a
house valued at about $160,000. I have an equity line
with a $20,000 balance (at 8.5%)
that I can pay down at about 1,400/month, or I can
take out a first mortgage at
a lower rate (7.13%)for $50,000 or any other amount,
pay off the equity line and invest
the difference, keeping the tax deduction. Obviously
I'm not an accountant. Any
advice? Thanks alo


I am not one to borrow inorder to invest. Therefore I would say do not borrow more than the 20,000. Remember, the market can go down.

Do the math, but the cost of a 20,000 1st mortgage may not be able to be recovered. My guess is to stick with your equity loan. But go back to the lender and ask for a lower rate now that the first is paid and they have better security and know your payment history.
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