Is there any way to re-structure my HELOC?

Question

I took out a HELOC and bought an investment property in yucca valley to use as an Airbnb and I just want this HELOC gone! The payment keeps increasing each month and I was curious if there was any way to make it fixed if I restructure it?

Thanks!

Madeline Malinovsky · Answer

Another options would be looking into a cash-out refinance to pay off the HELOC. If you have a first loan, this would refinance both together into (likely) a higher rate, but you can certainly target a fixed rate option. Where is the property located, and what type of property is it?

Tiamo Wright · Answer

@Sean Starkey most of the larger banks just offer the option online where you can look at current rates to lock in if you have a balance. I know US Bank and Chase both offer locks. If you don't see it on your online portal it doesn't hurt to reach out and ask. There is also most likely a lot of info in that giant stack of papers they had you sign, I am one of the weirdos that like to read all those pages so maybe start there and then reach out to your lender.

I am not sure how private lenders would look at a HELOC vs. an active project. But I am sure someone on here might have some experience with a similar situation.

Sean Starkey · Answer

Yes I would like that idea how would I get a fixed rate should I ask my lender?

Tiamo Wright · Answer

I am not sure if you are asking to restructure the HELOC itself or get cash in a creative way to pay it off? Assuming the first, have you thought of just locking your HELOC rate to remove the variability? While it might be a higher rate it would eliminate the rate increasing with current rates and then you would have a fixed rate.