Chitownproperty

Some homeowners are beginning to feel squeezed by payments on their variable rate home equity lines, especially after two years of interest rate increases by the Fed. Traditionally, they had two options: refinance their first mortgage and take out another credit line to pay the first, or sit tight and try to make the payments as best they can. But now, though they aren’t publicizing the fact, most lenders will convert a variable rate line of credit to a fixed loan. The new fixed rate loan may or may not guarantee lower rates and payments instantly, but it can give borrowers greater certainty about their montly costs.