pay car off with equity line of credit
We have no mortgage payment. Should we pay off our car loan of $30,000 with our equity line so we will have a mortgage exemption. Equity line interest is 5.25% fixed
Terry Says
Ever hear the old expression "out of the frying pan and into the fire"? Well, yes, you can deduct the interest on a home equity line. And the interest could jump quickly if rates rise. And you're probably only repaying interest on the home equity line -- leaving you a balance at some point in the future. How about just paying the car loan off in full. Instead of a vacation this year?? Surely you must have some other savings -- although you still need to keep some liquidity.
