Flip entire mortgage to HELOC

[puckedoff]

I have a mortgage renewal next year. It looks like HELOC rates are basically in line with mortgage rates, my mortgage is ~60% of my home value, is there not to just not renew the mortgage, and get a HELOC for the full remaining mortgage value?

From my vantage point I would not have any pre-pay penalties, flexibility to pay interest only if I choose and would not have to deal with any future mortgage renewals.

Pros/Cons?

[Nufy]

Thats what I did a few years back...I had just started as a contractor so my employment history was limited.

My broker couldn't get a mortgage with a decent interest rate so she looked at a HELOC instead.

I can pay what I want monthly above the min payment without penalties and if needed withdraw at will for renos, bills, Hookers & Blow..etc...

Just treat it like a mortgage and not a bank account and you will be fine.

[fundmark19]

Originally Posted by puckedoff

I have a mortgage renewal next year. It looks like HELOC rates are basically in line with mortgage rates, my mortgage is ~60% of my home value, is there not to just not renew the mortgage, and get a HELOC for the full remaining mortgage value?

From my vantage point I would not have any pre-pay penalties, flexibility to pay interest only if I choose and would not have to deal with any future mortgage renewals.

Pros/Cons?

Manulife One is a great product that allows you to do this. You can also set up small mortgage portions if you want as well. Gives you best of both worlds