Yikes - I need some imput soon between 2 options
I need to take out a home equity loan to consolidate debts and pay off a HELOC that is not fixed rate with interested only payments. Here are the two choices:
1) Home equity loan for $74,000 @ 8% with $2,800 fees (fixed rate) and giving us $2,500 in cash back and amortized over 30 years and due in 15 for about $537 a month.
2) Home equity loan for $75,000 @ 7.5% with no fees (fixed rate) and giving us $5,000 in cash back and amortized over 30 years BUT due in 5 years at about the same monthly payment as above.
Would you be concerned about the due and owing in five years and that we would have to refinance that loan?? Any other thoughts??? I have to decide fairly soon.