Is a Home Equity Loan Your Best Financial Move?
Homeowners with consumer debt often consider borrowing against their home equity to secure a loan. The loan money can be used to pay off high-interest consumer debts like credit cards and auto loans, but this isn’t always the best financial move you could make. Remember that even if you pay off all of your consumer debts, you’ve simply shifted your debt to a new loan. A home equity loan interest rate might be much lower than consumer debt rates, but over the life of you mortgage all that interest will add up to quite a large sum.