Home Equity Loan Resources
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Home Equity Loan Resources
| Sat, 02-18-2006 - 8:19am |
These are some articles explaining the basics of HEL and HELOCs. Many people ask about using these types of loans to pay off their debt. These articles explain some of the advantages and disdvantages of doing so:
http://www.bankrate.com/brm/green/loan/basics1-intro.asp
http://www.mostchoice.com/financial_planning_mortgages_home_equity.html
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All my best,
Danni
cl-tiffany10605
Got debt questions? We got answers.
Debt Q&A
cl-tiffany10605
This is just my opinion here...
But it is NEVER a good idea to turn un-secured debt into SECURED debt my using home equity to pay off credit cards. Suzy Orman spounts this too. Lots do. What happens is you then run all the cards back up and what happenes to your house? You lose it bacause you can't pay the first mortgage, second mortgage, and the new cc's too.
Just another option to think about, but seriuosly think about it. Go see a financial advisor before ever doing this.
sweetpea
I have to agree with you. Converting unsecured debt into secured debt with your home's equity is not a good idea. At first blush it sounds like a good idea, but it can be a very, very wrong decision.
The credit industry is heavily marketing this concept. The credit industry is courting all those with any amount of home equity to cash it in for all sorts of reasons that sound sensible: put cash in your pocket and offer an easy way to pay off revolving debt and you have the tax benefit of writing the interest off. However, the flip side of reasons to not do this usually isn't discussed.
No one can tell what the future will hold and pulling out equity with a HELOC is not a wise idea for most people.
Carolyn
You know - I have seen info on this guy - it seems nuts, but hey if it works for him! :)
DH and I are using about 25% of our available credit on our cc's, so we're below the magical 50% number.
All my best,
Danni