Home Equity Loan/ line of credit

What are the payback terms on these?

Are they more like mortgages 10, 15, 30 or are they more like a car loan???

We got royally screwed by our former broker with a larger prepayment penalty on our mortgage with our three year arm. We are talking about it costing us 10,000 in penalties just to refi. There wasen't anything in our note about it but he snuck in a rider at the end and that is what screwed us.

So I would love to refi and get rid of the arm since we recently found out we will be here longer then expected. We thought my husband would have had orders before three years but now we found out the USAF will most likely keep us here pretty long.
Thanks in advance

Re: Home Equity Loan/ line of credit

A line of credit is just that - like a credit card! You have a minimum to pay to each month which is 100% interest. So it's up to you to pay more than the minimum in order to pay it down.

Re: Home Equity Loan/ line of credit

We are doing this. We have a 30 yr fixed for a certain amount and then the rest in a home equity line of credit. It is not a fixed interest rate and we only pay the interest for the first 5 yrs.