We have $14.5k cc debt, $6.8k car loan, 1.5k other debt. We have $86.5k left on mortgage. The house is worth $130k. The car loan is at 5.99%. $14.5k of the cc debt is at 11.9%. the other 1.5k is 0% so we are not worried about that. We are debating on whether we should get a HELOC (7-8%) or try for a cc that is 0% for 15 months that has 4.9% on life of balance transfer. The HELOC has tax advantages but higher rates than the cc. Which do you think we should get? Another note is we want to sell our house mid next year.
Should I get a HELC or refinance to a 0% apr for 15 months credit card with 4.9% balance transfer for life?
it was easy until you said you were going sell --- leave car where it is and transfer the rest to a credit card -- hope you can get what you need out of your house!!!!
Should I get a HELC or refinance to a 0% apr for 15 months credit card with 4.9% balance transfer for life?
That is something you need to really decide with your area of living and the housing market. Living in Vegas, our homes may be valued lower in the next 6 to 9 months. That being said, the HELC would take away from our investment. BUT, the monthly payment on the HELC will always be lower and the interest is claimable. Paying more monthly on the HELC will help buy that down against the home. Guess it is something you need to investigate more in your area.
Should I get a HELC or refinance to a 0% apr for 15 months credit card with 4.9% balance transfer for life?
If you want to sell your home in the near future, I%26#039;d go for the credit card debt transfer. I wouldn%26#039;t transfer the car debt to a credit card; you have a low interest rate on a relatively short-term loan. Converting that debt to a long-term loan with only a slight interest rate decrease will actually end up increasing the total cost of the vehicle. Starting a HELOC will require you to pay some costs up-front, and you will not be in the house long enough to recoup them. When you sell your home, use the profits to pay as off as much of your debt as possible, minus Realtor fees (estimated 7% of sale price) and what you will need for a 20% down payment on your next home. That way, you will get a good rate on your next mortgage, while increasing your monthly disposable income. Use this income to pay the maximum possible on your remaining debt each month. By shortening the terms of your loans, you will save big money, in the long run. Once debts (other than mortgage) are paid off, don%26#039;t incur any new debt. Pay any credit card purchases off as soon as you get the bill each month. Divide your use of the increased monthly disposable income between retirement investments (shoot for 10% of income, minimum), saving to create an emergency fund (enough to pay bills for at least 6 months), and extra principal payments on your mortgage.
Should I get a HELC or refinance to a 0% apr for 15 months credit card with 4.9% balance transfer for life?
Get in contact with me! I can get you mortgage refinance rate quotes from the best lenders to lower your payments by thousands of dollars. Send me an email: davidshaffer@ocopa.com
I%26#039;ll see what I can do ... will reply asap.
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