Posted on: 06th Jul, 2011 12:23 am
I have two mortgages on the property. One of them is equity line of credit. As we have an equity line of credit, will it be better to payoff 2 car payments instead of paying 3 different interest rates?
Hi Guest,
In my opinion, it will be a good option to pay off the 2 car payments in full if you don't have any pre-payment penalty. You will be left with only one payment. It will be easier for you to pay the equity loan only.
Thanks,
Jerry
In my opinion, it will be a good option to pay off the 2 car payments in full if you don't have any pre-payment penalty. You will be left with only one payment. It will be easier for you to pay the equity loan only.
Thanks,
Jerry
You need to provide a lot more information than you did such as what is the current value of your home, when were all the loans taken out, current loan amounts, interest rates, monthly payments and your tax bracket if you itemize your tax deductions.
Without this information there is no way to tell you what the best way to go would be.
Without this information there is no way to tell you what the best way to go would be.
Also, look at the break even point. How long will it take you to recover the money you outlayed to pay those loans off, how long it will take to pay off the increased credit line, compared to the regular set payoff of the two cars. The cars will be paid off in time, VS the line of credit is revolving and can stay open with a balance for a long time, therefore you would be paying more in the long run. Look at the numbers. and compare.
It's hard to give you an advice if there are some details that is lacking. There are so many factors that can be considered in terms of equity line of credit as well as the interest rates. Hence, you should get an expert to help you answer your queries, tell all the necessary details to that expert and you can get the advice that you need.
