Can I refinance a HELOC into a conventional mortgage? (loan, rate, refinancing)

[kas141]

I currently own a vacation home worth $230K, with the only lien on it being a $52K HELOC with a variable rate. The rate on the HELOC is awesome right now, but I am concerned that it is going to skyrocket soon, with all the talk of rates increasing and inflation.

Is it possible to refinance the HELOC into a conventional mortgage? I found a great rate on a five year ARM (0.5% higher than my current HELOC rate), and I plan on paying it off in full within five years. I know nobody has a crystal ball where rates are concerned, but I'd love some feedback!

[VictorBurek]

Yes you can. Some lenders may not do a conventional loan that small, but you should be able to find multiple lenders that can do it.

[kas141]

Thanks Victor!

[VictorBurek]

You're welcome.

[stgifford]

I am still trying to find this issue out- I am hearing you can't ---- does anyone know or have proof of this-

I have a client who has a HELOC in the 1st position - in texas- they want to refi into FHA-

title comapny says they can't-

whats the loop hole here?

[hound 109]

Originally Posted by stgifford

I am still trying to find this issue out- I am hearing you can't ---- does anyone know or have proof of this-

I have a client who has a HELOC in the 1st position - in texas- they want to refi into FHA-

title comapny says they can't-

whats the loop hole here?

In TEXAS.....once a HELOC is taken out on a property (if it's a homestead) then ANY refinancing must be a Texas Home Equity Loan (or HELOC).

No FHA....No loans over 80% LTV....only a "Texas Home Equity" loan can replace a "Texas Home Equity Loan". It's a State law....not a loophole.

There are other items related to this that would depend on the borrower's situation.