If I have two loans does it mean 2x the interest?

[Andri Grullon]

Hello everyone, I have two HELOC one at 4.5 interest and the other at 5.5 interest.

My question is am I paying a total of 10 percent on both loan or an average of 5 percent on my loans. The cheaper line of credit is on my personal house, the more expensive one is on my rental house. I currently don’t owe anything just wanted to have it available to take advantage of future opportunities when I find a deal. Thanks in advance for your input.

[Corey Hawkinson]

@Andri Grullon They are completely separate loans. I guess, to use your term it would be the average of 5%. I don’t like that term but it certainly is not combined to 10%.

If you use the 4.5% HELOC you will pay 4.5% on whatever the balance is for that month on that specific loan.