# Quick house finance question.

**URL:** <https://boards.straightdope.com/t/quick-house-finance-question/337076>\
**Category:** Factual Questions\
**Created:** [December 24, 2005, 1:59pm UTC](https://boards.straightdope.com/t/quick-house-finance-question/337076 "2005-12-24T13:59:45Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Joey\_P](https://avatars.discourse-cdn.com/v4/letter/j/919ad9/32.png) [@Joey\_P](https://boards.straightdope.com/u/Joey_P)\
**Post date:** [December 24, 2005, 1:59pm UTC](https://boards.straightdope.com/t/quick-house-finance-question/337076/1 "2005-12-24T13:59:45Z")

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In addition to my mortgage I also have a line of credit on the house. It’s an interest only payment (but I always pay well more then the interest). Anyways, since I got the house about 7 months ago, the interest rate on the LOC has gone up almost every month. In quarter percent incrememnts, it’s gone from 6% to 7.25%. What really bugs me is when the minimum payment (interest only) is $100 one month and I pay $200, then the next month it’s $105 becuase of the rate increse. Anyways I put an email into the bank asking about this, but assuming I don’t get an answer I like, I wanted to know if it’s possible to have another bank buy out the line of credit. Can you do that? I know with a regular credit card you can transfer the balance, but this is a secured line (my house) so I don’t know how it works. Any ideas?

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**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\
**Post date:** [December 24, 2005, 3:52pm UTC](https://boards.straightdope.com/t/quick-house-finance-question/337076/2 "2005-12-24T15:52:52Z")

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You have a HELOC (Home Equity Line of Credit), right? [http://www.mtgprofessor.com/A%20-%20Second%20Mortgages/what\_is\_a\_heloc.htm](http://www.mtgprofessor.com/A%20-%20Second%20Mortgages/what_is_a_heloc.htm)

Most interest only loans, including HELOCs, are interest only. [http://www.mtgprofessor.com/Tutorials2/Interest\_Only.htm;](http://www.mtgprofessor.com/Tutorials2/Interest_Only.htm;) [http://www.thinkglink.com/article.asp?Title=Borrowers\_Remorse.htm&ID=1083](http://www.thinkglink.com/article.asp?Title=Borrowers_Remorse.htm&ID=1083)

You can’t get another bank to “buy” the mortgage, but you can refinance it. Shop around a bit, and you will find fixed rate HELOCs if you still need the credit line.

Good luck.

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**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\
**Post date:** [December 24, 2005, 3:55pm UTC](https://boards.straightdope.com/t/quick-house-finance-question/337076/3 "2005-12-24T15:55:34Z")

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> [@](#):
>
> Most interest only loans, including HELOCs, are interest only.

Apparently I didn’t get enough sleep last night. Let me try again. What I meant was,

Most interest only loans . . . are adjustable rate mortgages (ARMs). If you don’t want your rate to increase, you want a fixed rate mortgage instead of an ARM.