HELOC Refinance Logistics

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HELOC Refinance Logistics

Post by tev9876 » Thu Sep 14, 2017 9:45 am

I am 9.5 years into the 10 year draw period on a HELOC at Bank of America. I owe about $18K on a $48K line on a house worth about $130K at Prime +0.5%. The primary mortgage is paid off so this is the only debt against the house. I want to keep a HELOC available so I am going to refinance or pay off and close then reopen. I may also purchase property next year so I'm looking at a 100K line.

My primary questions: Is it better to pay it off and close it or simply refinance and move the existing balance to a new HELOC? Does it matter if I am switching banks?

I could easily flip the $18K to 0% credit card via balance transfers for a 2-3% fee for 12-18 months which is still better than my current HELOC rate. I churn cards for rewards so have around $225K of dormant credit card lines, including business cards that would hide it from my credit report, so I don't see it impacting my FICO which is currently 800+. My income easily supports the payments.

Sticking with BoA would probably be easiest since my checking is already there also. They are offering a 2.99% intro rate for 12 months then 4.17% (Prime - .08).

PNC is also local to me and has a Prime - .87% HELOC which seems to be one of the best rates out there. I could also score a $300 bonus for setting up checking.

In my example scenario PNC comes out about $4000 cheaper over 10 years.

Logistically is it best to:
1. Pay off the current balance, close the BoA HELOC then start a new app with PNC.
2. Don't pay off the current one and just start an app with PNC.
3. Stick with BoA for less hassle.
4. Something I am missing.

Thanks in advance for the advice.

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