I have 2 homes:

5.25% Fixed on $196000 matures in 2019. Home value is $450000
Payment $1881

5.25% Fixed on $231000 matures in 2033. Home value is $600000
Payment $1391

HELOC Prime minus half percent. $126000 line with a balance right now of $37000.
Payment varies but can be interest only.

My questions is this. I would like to free up some short term cash flow by maybe making interest only payments on some of the above debt, or now that rates are coming down refinance a large portion with another HELOC or Loan.


Any thoughts?

Thanks!

5.25 is a very good rate and you'd be hard pressed to find one better that would lead to significant savings since there's usually refinance fees associated with it.

Also, don't pay much attention to home values, unless you had it appraised yesterday or your area is the one that's different from the rest of the country, the value is going down daily.

Do you really need both homes? If you were able to sell or rent out one of them, that would free up the cash-flow you're talking about.

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If you absolutely do not need to get a loan especially a 2nd (unless you qualify with your financial documentation provided) i would stay away from that mess. the current credit crunch is brutal and there are no real signs saying it is letting up anytime soon.

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