The Draw Period Ends. The Payment Jumps.
Fold an existing line of credit into new financing before the payment changes, on whichever route your file qualifies for.*
One question changes the price.
Whether this is a limited cash out or a cash out depends on what the line of credit was originally used for. Nothing else.
- A junior lien used to buy the property can sit in a limited cash out*
- A line taken later makes the transaction a cash out*
- Limited cash out prices better than cash out*
- Standard documentation: income, assets, and credit
- A full appraisal is normally required
- A new second lien is sometimes the better answer
Classified as a limited cash out or a cash out, depending on the line*
A junior lien taken to buy the property can be paid off in a limited cash out*
A line taken later is treated as a cash out instead*
Limited cash out prices better than cash out*
Standard documentation: income, assets, and credit
A full appraisal is normally required
What is Saxton HELOC Consolidation?
Replacing a first mortgage and an existing line of credit with one loan
A home equity line of credit has a draw period, and when it ends the loan starts amortising. The payment often rises sharply on a known date. Consolidating folds the line into new first mortgage financing before that happens.
Two things decide this one: when your draw period ends, and what the line of credit was originally used for. The first sets the timing and the second sets the price.
The important part is the classification. If the line was taken out to buy the property, paying it off can sit inside a limited cash out refinance. If it was taken later, for anything else, the transaction becomes a cash out and prices accordingly. That single fact is worth real money.*
Why choose Saxton HELOC Consolidation?
Built for owners whose draw period is ending on a date they already know.
A Known Date
Unlike most refinance triggers, this one is on a calendar. You can see the payment change coming years ahead.
Purpose Sets The Price
A line used to buy the home can be folded into a limited cash out. A line taken later makes it a cash out.*
One Payment, One Rate
A line of credit carries a variable rate. Consolidating into a first mortgage can replace it with a fixed one.
Check The First Rate
If the first mortgage carries a low rate, replacing it to absorb the line can cost more than it saves. Compare before you commit.
A Second Line Instead
Sometimes the better answer is a new second lien rather than replacing the first mortgage at all.
Deferred Balances Differ
A deferred balance sitting as a second lien is treated differently from an ordinary junior lien. Say so early.*
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about folding a line of credit into your mortgage.
Because a line of credit has a draw period, and when it ends the loan begins amortising. The payment can rise sharply on a date that is already known.
It decides everything. A junior lien taken to purchase the property can be paid off inside a limited cash out refinance. A line taken later, for any other purpose, makes it a cash out.*
It depends on the answer above. Limited cash out prices better than cash out, so the classification is worth real money over the life of the loan.*
Then think hard. Replacing a cheap first mortgage to absorb a line of credit can cost more than it saves. A new second lien behind it is often the better answer.
Sometimes that is exactly right, particularly if the first mortgage is worth keeping. It is one of the routes we compare rather than the one we assume.
Standard documentation for the new loan: income, assets and credit, plus the paperwork on the existing line so its original purpose can be established.*
Before the draw period ends rather than after. You know the date, and a file assembled in advance has options that a rushed one does not.
Find out what you qualify for
If your draw period is ending, there is likely a Saxton route that fits. Get a fast, no obligation pre-qualification today.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Whether paying off an existing junior lien qualifies as a limited cash-out refinance or as a cash-out refinance depends on the original purpose of that lien and on program requirements. Deferred balances held as a second lien are treated separately. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.