From: "Jeff Strickland" 
Newsgroups: alt.org.natl-assn-mortgage-brokers
Subject: Re: Loan Options
Date: Mon, 13 Oct 2003 08:58:42 -0700
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"Bridgadoon"  wrote in message
news:voir35lncjfec0@corp.supernews.com...
> On the surface, that's a no brainer; Option #2 has a smaller payment.
>
> Often, loans over 80% have additional pricing requirements, which have to
be
> addressed through higher interest rates, or increased points; though you
> didn't mention that.
>
> PMI is money "down the drain", and should be avoided if possible.
>
> If you are in an area where real estate prices are appreciating or you
don't
> intend to be in the property for more than three-five years, go with the
> HELOC.  If you're there for the duration, go with the fixed rate second.
>
>

Why did you suggest the HELOC under these conditions?

I suppose the adjustable interest will not rise in this short of a period to
meet the current fixed rates of today. That is a valid reason to take the
HELOC over the fixed rate 2nd.