Hello all, Do anyone here familiar with home equity? What are the best options? Sell, refinance or home equity loan. I am swimming in debt for the first time in my lifespan. I would like to secure some money to help me pay off some bills. I have equity in my house from The Financial Forum, Ontario ( Is it best to refinance this high interest loan, sell the house and use the profits to pay my bills, or take out a home equity loan? My first instinct is to remain in the house for a few more years because this area is increasing in value. How safe are home equity loans? Is refinancing wise with poor credit?
Fri May 22, 2015 5:02 am
Wino Senior Member
Cash: $ 113.80
Joined: 03 Aug 2012
Even though the link in your post tells me you're just trying to get clicks, I'm going to answer the question about getting a home equity loan to pay off credit card or revolving credit account balances:
Do not do it. You have purcahsed a dinner or a stereo, and now you're going to put your house on the line for it, and pay off that bowl of soup for 15 to 30 years. Think about what that means. You're taking unsecured debt, and betting your house that you can pay it off.
You'd be better off letting the debt lapse. At least then you don't lose your house. You should stop spending so much, and pay down your debt until at least you can handle the payments. If you're smart, you'll pay down the debt completely, and start investing your money instead.