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Consolidating 1st and my heloc


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Hi everyone,

I have a first mortgage of $70,000 and a HELOC of $50,000 (balance owed is the ful $50k)

I want to know whether I should leave things the way they are, or refinance and combine the two into one 1st mortgage?

My credit report shows the two accounts separately, of course. Since my HELOC is maxed, isn't this negatively effecting my credit?

I assumed that having one mortgage for $120,000 and no HELOC would be better, but what do I know.

Would appreciate a reply, thanks!


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Saffy, you are right on target. Get rid of the HELOC. With this lender it may not be bad/reported as an open account, but it may be, and if not it may be reported that way with the next lender that buys it, if that happens. You could be hurting your credit with a tradeline that is maxed out.

You have pretty good credit, and depending on how much you own on your home vs what it is worth (Called LTV/Loan to value), you could end up with not much higher than the 6% that your HELOC currently is at.


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