I have $30,000 HELOC I have no other debt I make $90,000 a year I am 55 years old I have $70,000 in 401(k) I have no savings liquid do I start saving 3 to 6 months emergency savings now and start investing 15% of my income now or do I hold off and Pay off the HELOC it will take about a year and a half the problem is I do not want to refinance because my HELOC and in May 2020 and I am not staying in my house so I will probably be out of my house in 3 to 4 years please help me Terry

Terry Says:  Gosh, you have a complicated story with a lot of moving pieces.  The one thing you didn’t tell me is when your HELOC turns into a balloon — with full payment required.  It doesn’t look like interest rates will rise out of sight, so that’s less of a worry than the moment when it comes due.  And that’s why you should probably consider refinancing the whole thing now, while mortgage rates are low.  Assuming you have good credit, and at least 20% equity in your house, that shouldn’t be a problem.  You can roll the costs into your mortgage, and then when you decide to sell things will be easier.  Go to www.GuaranteedRate.com to find out if you could refi the whole thing, and what the monthly payment would be.

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