Question for the Money Doctors
Question submitted on Jan 11, 2012.
QuestionMy husband and I had a mortgage and a home equity. We paid off the first mortgage. We have a blance of $64000.00 on the home equity loan. Since the first is paid off what happens to the home equity loan?
You will still owe the balance of the home equity loan, and the lender of this will now be in "1st position" with the mortgage they have on your home. The 1st mortgage lien should be released by the lender you paid off.
Assuming it is a "loan" as you state you would just continue to make the payments for the remaining term. However, if it is a home equity line of credit, as opposed to a home equity loan, then you will be invoiced based on the lender's amortization schedule for the monthly payments for lines of credit. In either case, you can also pay more than the scheduled payment amount if you choose to pay down the obligation more quickly.
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