Hi Terry, I’m looking to pull some money from the equity of my home to pay for repairs and credit card debt. What is the best option between refinancing, home equity line of credit, equity loan? My home hasn’t been appraised but on the internet it’s worth about $200,000. Based on that I have about 85,000 in equity. I’m looking to borrow $50,000 for credit card debt and much needed repairs. My mortgage maturity date is 2043, my current interest rate is 3.375 and I have credit scores in the 700s. Thanks in advance!
Gosh, you probably don’t want to do that. For sure, don’t give up our current 3.3% mortgage. That’s a fantastic rate. I know you’re paying high rates on credit card debt, but rates on home equity loans aren’t really that great. Let me send you to my mortgage financing expert, Leslie Struthers at GuaranteedRate.com. Her direct email is Leslie@rate.com. I trust her to guide you to the best solution.
PS My idea of the best solution is to earn more money in a second job to pay down the credit card debt as soon as possible!