I have lived in my current home 11 years. My interest only loan which I'm not that happy that I got in the first place is going to convert soon and my current company is offering me 6.85% on my mortgage of $334K plus I could add my 75K Heloc loan. Currently with taxes and interest I am paying $2200 for the mortgage and $550 a month on the Heloc. I really don't like the Heloc through Chase - it is also interest only and I'm not making any headway. Anyway, our current lender is offering us the 6.85% for a 25 year loan. The payment would be $3500 for principal and interest. Am I likely to find any other company that will pay our closing costs?

There is a lot of competition in the mortgage market, so you may find a lender who will eat some or all of your costs so shop around. But 6.85% is a good rate.

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Originally Posted by Kentlandsgal

I have lived in my current home 11 years. My interest only loan which I'm not that happy that I got in the first place is going to convert soon and my current company is offering me 6.85% on my mortgage of $334K plus I could add in my 75K Heloc loan. Currently with taxes and interest I am paying $2200 for the mortgage and $550 a month on the Heloc. I really don't like the Heloc through Chase - it is also interest only and I'm not making any headway. Anyway, our current lender is offering us the 6.85% for a 25 year loan. The payment would be $3500 for principal and interest. Am I likely to find any other company that will pay our closing costs?

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6.875 is the going rate on a 25 yr fixed rate, but I doubt you will get a lender to absorb the closing costs, especially at that rate. The closing costs can be rolled into the loan if there is enough equity so the only thing you should have to take out of pocket would be an application fee. You may want to consider a 20 year or 15 year loan if you can afford it.. In that case, you would not be losing the years you have already put in... but it does depend on how you qualify and if you are comfortable with the payment.