Converting variable rate HELOC to a 30 year fixed rate mortgage, is it a good idea?
Hi, so I just got a new job like 2 weeks ago. Before that I was laid off for 5 months. And before I got laid off I was employed for 2 years and 2 months by 2 different employers. I want to convert my two variable rate HELOC to a 30 fixed rate mortgage. However, I’m worried that my employment, including being laid off for months, might block me from getting a loan or force me to get a higher rate. I’d like to hear your input about my current situation. Also, do lenders do real estate appraisal before determining a loan amount or do they use a different method for it? by gordonjcp915 from Brentwood, California. Jun 28th 2022
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
apply to refinance the HELOC to a 30 yr fixed rate ..this process shouldbe free to get started ,,,.if you appear to qualify - the appraisal will be ordered ....if there are issues with income / employment / credit / etc ...the appraisal should not be ordered ( fyi - there is an outside chance that the lender can get an appraisal waiver and not need to do an appraisal ) ...good luck
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
I don't read anything here that would prevent you from getting a loan. Simply reach out to a local mortgage broker, give them a full application, and let them give you the answer... It really is the only way to know. Good lenders will use various methods to determined an estimated value of the home at the application start to see if the loan looks viable. Ultimately, it is a guess, and the loan may need to change once the actual appraisal comes in. I provide home mortgage loans in MN WI IA ND SD. Find me at WI-MortgageBroker.com - Cambria Mortgage, NMLS 274132
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