Client who bought a home in 2005 finally gets to drop their interest rate from 6.5% down to 3.625%, 30 year fixed. This client bought this home in north Torrance on a 0 down in 2005 for $525,000.

Property values went down shortly after that, leaving them with a 5 year fixed at 6.5% and a home equity line 2nd mortgage. The home equity line was going to jump up by $400 per month because the draw period was over in 2015.

In 2014, they called me for a refi to combine the 2 loans and get 1 low payment. They were starting to panic because the HELOC was going to jump up in payment in 12 months. But because they had had some credit issues around a lay off, we had to work on their credit first. The value of their home was just getting back to their purchase price.

Because they had not paid down the mortgage over the last 10 years, they still did not have enough equity. So we worked on their credit.  Now their credit score rose from 630 to 705, and the value of their home is $620,000. YEAH, savings here we come!

They were able to save $713 per month! If you know anyone who has a HELOC from years ago, or wants to refi and still hasn’t, please have them give me a call. I would love to help.