Posted on: 15th Nov, 2009 08:42 am
I have a $20,000 balance on my home equity line of credit through my bank. Can I transfer that balance to a credit card that is currently offering 0% APR on balance transfers for 12 months?
Hi sia,
It is possible for you to transfer the home equity line of credit balance to a credit card. It is often a good move to do so. Home equity loans are secured by the equity in the property, while credit card debts are unsecured. The home equity mortgage lender can foreclose on the property in case the terms of the agreement are not met. However, the credit card company can sue you in such a situation, but it cannot foreclose on your property. But, you should keep in mind home equity loans are amortized over a longer period as compared to credit card debts. It is possible that the credit card payments could be higher than what you have been paying on the equity loan. So, you must check with the credit card company about what your payment would be before you transfer the balance.
It is possible for you to transfer the home equity line of credit balance to a credit card. It is often a good move to do so. Home equity loans are secured by the equity in the property, while credit card debts are unsecured. The home equity mortgage lender can foreclose on the property in case the terms of the agreement are not met. However, the credit card company can sue you in such a situation, but it cannot foreclose on your property. But, you should keep in mind home equity loans are amortized over a longer period as compared to credit card debts. It is possible that the credit card payments could be higher than what you have been paying on the equity loan. So, you must check with the credit card company about what your payment would be before you transfer the balance.