If you can get those two both together, go for it and don't look back; that's a huge financial win.
You might be able to do slightly better on the Home Equity Loan rate, maybe. You'd have to search around for it but you might be able to find 5.5% or so current market.
Actually I stand corrected, DCU is offering 4.385% in today's market on a 80% LTV HEL, would have to check but I think they're still underwriting that under a 700 FICO 5 score. There's probably lenders near that too but I know their HELOC rates are lower than most and I suspect their HEL ones are too so they're a pretty good benchmark.
If you need 90% LTV that's probably somewhat more expensive regardless of lender.
@I stand corrected. I have $32k available to me (90% LTV) @ 7.34%. And the term is 240mo.
@so 32k @ 7.34% for 240mo = $294
In debt 20 years and cost ~21,000 interest
@Remaining $75k @ 6.50% for 84mo = $1,120
7 years and ~18,400 interest
20-years and (21k+18.4k) = 39,400 interest
Savings of $583/mo over current $110k at approx 13%.
@105,000 @ 13% with 2000/mo payment = ~51,000 interest loss but paid off < 7
@105,000 @ 13% with 2200 payment = ~43,000 interest and paid in 6 years.
I would pay a few thousand extra in interest and be paid off in 6 or take new loans and pay the same 2000 a month and save some real money. Your plan of lowering monthly payments and extending your time in debt does not save a great deal of money but does keep you in debt a very long time.
If you can get those two new loans, it will lower your monthly payments.
Free up some cash flow.
Good luck !
While it might not be better, depending upon your accepted level of risk there is another potential option if you have high credit card limits.
If you use the HELOC to pay down the 50k loan, you could potentially transfer the remaining balance to a 0% credit card.
This would get your monthly payment down even further, your APR down even further as well. The lack of additional new tradeline/inquiry is beneficial to profile (might be outweighed in short term by higher CC UTI).
If you do not sell your home for expected price within 12-18 months (standard 0% BT timelines) then you will be stuck with a higher APR.
Depending upon profile specifics it might hurt your credit score, which could have other issues.
Needs to have a high limit CC that offers BTs
edit: highlighted "accepted level of risk" because this option should be considered riskier than the original proposed method.