Options to pay off a line credit
By lana17
@lana17 (1)
July 10, 2006 11:34am CST
I am 63 and my wife 59. We have had a line of credit for several years. We are now wanting some options to get the $20,000 paid off. I wanted to take it out of my 401K, but my wife is totaly against that. Our local bank has a 6.50% on the loan, but only until Oct. 06 and then it goes up a 1/2% point. after that who knows how it might change. I called Ditech ( we have an excellant credit rating) and they said we could do a 15 yr. for 7.95% fixed at $190.55 per month. No penality for pre pay, and no application fee. Only a recording and title fee of $150. What are some of you suggestions?
2 responses
@Andy77 (430)
• United States
19 Jul 06
If you take it out of your 401K, you'll get hit with large taxes. The Ditech loan sounds very good, although you may be able to get a little lower rate if you pay some fees. Could you pay off part of it and take a loan for the rest? Could you get a 6% credit card with a $20,000 limit? Do you have any annuities you could start to draw on? Do you have any relatives who could loan you the money for 5%, which would be a good rate of return for them?
@sedel1027 (17846)
• Cupertino, California
10 Jul 06
I would go with Ditech. 7.95% is an excellent rate and I doubt you will get a much better rate than this from you bank even with immaculate credit.
