HELOC and primary home loan

[Felicia Bridges]

I'm am looking for a HELOC, so that I can have capital available for down payments/investing. I have never had a HELOC. One company wants to refi the conventional loan on my primary residence in combination with the HELOC, is that how it usually works?

[Craig Jeppesen]

I would not refi your mortgage unless you could jump down from a 30 to a 10 or 15 year term and only if the rate is at least 1% lower than your current rate.

I would do a no fee up to 80% Ltv heloc with a rate at prime or prime less 25 bpts. I would not do a 90 or 95 ltv heloc. This is too much risk on your main home and the rates are usually higher.