Refi HELOC?

Financing, Hard Money Lenders, Private Money
1

I’ve got a friend who has a $20K HELOC (w/ Wells Fargo) on his personal residence that he hasn’t touched. He took it out several years ago and the interest rate is like 10.5%! He doesn’t know what to do with it; he doesn’t want to use it at 10.5%, and banks in our area are offering rates about half that right now on HELOCs. He knows he shouldn’t close it, as it would negatively affect his credit. He would like the money to make some improvements to his house so he can put it on the market (not that he’s in financial distress or anything, just time for a change.)

Can he refinance a HELOC? Any other ideas or options?

2

If there isn’t a prepay penalty, he should be able to close it without a problem. He should just tell whomever he is going through for the new HELOC that he is going to close the existing one. They will require written proof that it is closed before they approve the new one.

LTV’s and qualifications have become more restricted, so do the homework on this one before closing the other out.