Ask Terry Questions Home Equity /Refinance

Home Equity /Refinance

By Terry Savage on April 20, 2024 | Credit/Debt

I am trying to get a home equity loan to pay off a high interest credit card (29 percent). They’re recommending that I just refinance and take out equity but that will take my original mortgage which is at like 3.75 percent to now what would be a 5.99 percent mortgage. Is that a wise idea?

Terry Says

NO! That’s a TERRIBLE idea! Hang on to that 3.75% mortgage!!
I won’t ask why you’re smart enough to have a low rate mortgage, but have a 29% credit card finance charge? (but that’s what I’m thinking!)

Try a balance transfer card that will lower your rate to zero for at least a year. And then pay down the balance during that period. Search here:



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