As host of the Money Minute, RP Funding CEO Robert Palmer uses his expertise in the financial and real estate industries to answer viewer questions and offer valuable advice on money saving tips and personal finance goals.
One viewer has a home equity loan amount of $55,000 at 7.79% and wants to refinance. He has good credit and is in good standing with equity. Given his situation, is he able to refinance a home equity loan?
With good credit and a good amount of equity, he should absolutely be able to refinance. He can fall under what is called the cash out refinance rules which would give a lower loan to value.
With a loan as low as $55,000, there will also be limited closing costs — which will probably fall around $1,800 or $2,000. With interest rates as low as they are, he should be able to recoup those fees in the first year of savings. Given these factors, refinancing a home equity loan should be an attractive option.