We bought our house in October, with 2 loans, an 80% mortgage (fixed rate), and a HELOC for 15%, which has a variable rate. The other 5% we put down. Since closing, the mortgage for 80% has been sold to another mortgage company (Countrywide, if this helps).
Countrywide is offering us a HELOC for roughly 10% the homes' value. Is this worth looking into? I've been ignoring their solicitations, figuring we don't carry CC balances, so have no real need for the additional expense of closing on a second HELOC, etc..
We have plenty of credit cards should we need it, and although we haven't paid down that much of the existing HELOC we have yet, there is some room for a few hundred dollars (guessing, maybe 1K by now) if we do need some cash. Which hopefully will increase as we make our payments each month:)
We plan to re-asses our house in the next year (or 2) to hopefully have 20% equity based on the increasing home values in our area, as well as our mort. pmts, etc. We hope we'd then have our 20% equity, and then the HELOC we currently have can be refinanced to a fixed rate loan.
Does this make sense? Is there any benefit to taking Countrywide up on their HELOC offer? any advice would be appreciated.. Thanks!