Combing/Moving HELOC/LoC from Bank A to a new Mortgage at Bank B - Advice appreciated

TorontoEh wrote: ↑ Hi all,

I'm trying to figure out if anyone have done this before the below scenario as I'm being offered b/c the mortgage is being refinanced/redone from current 2.25 to 1.75% Variable.

Mortgage amount is $230K

Now I was told they can move my outstanding heloc of 50K from Bank A (my original bank ) to Bank B (1.75%) which is refinancing the mortgage of my principal residence.

So instead of paying just monthly interest at 2.45% for HELOC, lump that into the new mortgage and include it and pay less interest.

Thinking out loud, it'd take 180 months to pay monthly principal of $277.77 to pay off the HELOC at Bank A - not counting interest.

Is it safe to say even though my payments will be lower of this combined amount at Bank B, I will obviously be paying higher interest in 25 years amortization?

The only plus I can see if pre-payments option to pay off the entire mortgage sooner.

Thoughts if you'd choose this rather than just leaving the HELOC alone at Bank A and continue to pay monthly P+I ?

skeet50 wrote: ↑ What are you trying to achieve by refinancing your current mortgage? Are you looking for a lower payment or are you looking to save money overall? It seems as though you are primarily looking for a lower overall payment as your plan is to refinance into another 25 year amortization. You rarely save money overall when you refinance into a longer amortization than your current mortgage. What is the remaining amortization on your current mortgage?

TorontoEh wrote: ↑ Hi skeet, I wanted to save money, so at the moment my rate is 2.25 and with the new I was offered 1.75%, I have 23 years 2 months on current amortization remaining (on a 25 yr i signed up with).

thanks

TorontoEh wrote: ↑ Hi skeet, I wanted to save money, so at the moment my rate is 2.25 and with the new I was offered 1.75%, I have 23 years 2 months on current amortization remaining (on a 25 yr i signed up with).

thanks