Should I refinance Home Equity loan to consolidate credit card debt (I am buying a new house in 120 days)?

Answers:1   |   LastUpdateAt:2012-08-23 15:39:02  

Question
daydrian
Asked at 2012-08-14 09:47:03
Consider this :
1 . I have $ 30k in credit card debt .
2 . I have a first mortgage for $ 200k (4% ) and an equity loan of $ 170K (a prime rate ), without additional available credit .
3 . I will buy another house in late April.

Would it be better to refinance my home equity and credit cards in a new home equity loan , or just stick with what it is?

I heard that I can be able to get better rates on loans for my new house, if I can refinance. Could this be true?

Thoughts ? Comments ? Alternatives ?
Answer1SUBSTITUTION METHODAnswered at 2012-08-23 15:39:02
Buy another home with a HELOC for $ 170K is a bit risky. If you are doing this for investment purposes , make sure you can cover your new mortgage / taxes / monthly maintenance . That said, consolidating your credit card debt is a good idea only if you are willing to cut up all your credit cards and never use them again . Learn to pay cash before you take advantage of the debt through owning two houses, a HELOC and credit cards .
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