home owners are better off taking out a home equity loan than.....

@winterose (39918)
Canada
March 14, 2008 1:11pm CST
I am doing research work on mortgages and I just found an article that claims that it is cheaper in the longer run to take out a home equity loan than to borrow on your credit cards. For every 10,00o borrowed from a home equity loan you pay 60.00 a month, and it is set a 6%, with a credit card you pay back usually 12, to 24 per cent in interest, but all credit cards half a requirement that you must pay 3 percent of the debt back per month, that would bring your payment to 300 a month on 10,000 and you still have those high interest rates, this is incredible, have you opted for a home equity loan, if not why, if not why not/ http://www.themortgagestoreonline.com/articles/home.php?include=133143
1 person likes this
3 responses
@suspenseful (40316)
• Canada
20 Mar 08
We own our house out right and I would not take out a home equity loan. We can pay off our credit cards in a short while and besides we have money in the bank to cover any emergencies. I was reading on home equities and if for some reason you cannot pay it off, the bank owns your house. I would rather save the money and have enough so that I can pay itoff. With both credit card and home equities, you still pay interest and if you get a home equity you are more likely to take longer to pay it whereas with credit card loans, you are more apt to pay it off sooner.
@raydene (9874)
• United States
15 Mar 08
Hi Sweet I have a rule.. If I don't have the cash I do not buy it and you know what? I usually survive without it! lol oxxoxoxoxo
1 person likes this
@uath13 (8207)
• United States
14 Mar 08
Credit cards are evil, evil I tell you! I'll avoid both if there's any way possible.
1 person likes this