Ask Terry Questions Borrowing money

Borrowing money

By Terry Savage on November 04, 2023 | Credit/Debt

Hi! I listen to you all the time on WGN! My husband and I would like to borrow some money for our daughters upcoming wedding. Should we refinance, take out a home equity loan or take out a line of credit? We have 18,000 left on our mortgage. Our house is worth approx 500,000. Thank You!

Terry Says

My advice — don’t borrow! Offer them a small check and let them set up their own destination wedding!
I know you won’t follow my advice — but this is the WORST time to borrow in any of the ways you suggest. Rates are so high, in any case. And debt builds more debt. If you take out a home equity line of credit, it will look affordable, because they will likely make it an interest-only payment. Then in a few years you’ll face a balloon repayment and be shocked.

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