Converting your Adjustable Equity Line to "Fixed"

WARNING: Many lenders are offering to "Fix" your currently Adjustable Equity Lines to a fixed rate below the current Prime rate (at no cost, lower rate, fixed). Here’s a potential challenge: If you’re currently paying Interest Only on this line, and you roll it to most of the proposed Fixed loans, you’ll typically have to pay Principal in addition to the Interest payment. Point being, your payment may go up and you’ve lost the flexibility to pay down/recast the balance and payments and you’ve lost the ability to draw future funds (in most cases). Do your due diligence and get the facts. Every lender varies!
SERVICE: I’m also hearing more and more about lenders and in-house banking lenders quoting one scenario, then upon review quoting an entirely different program and guidelines. If this happens, get the branch manager involved and express your displeasure with the dis-service. Customer service needs to remain Job One.