Question by Mama J: What’s better a mortgage refi or a new equity line of credit?
I have a rockin’ 5.5% mortgage interest rate and I also have a small but maxed out equity line of credit. I’m looking to clear out some debt so that I can become a stay at home mom. I can either refinancing our mortgage to pull out $ $ in order to clear out the debt but lose the nice 5.5% interest rate to something like 6.5% OR I can open a new line of credit for just the amount that we need to clear the debt, of course that interest rate would be a bit higher. I’m siding with the line of credit only because if I ever came across some money, I can pay it off. But my husband would rather add it all to the mortgage, for some inexplicable reason. I would like to hear pros and cons and if anyone has ever done this before.
Answer by hin368
well the one good thing about an open line of credit is that your equity in your home is still safe and available in case of a major emergency so if the small line of credit is available use it safe some of that money to even pay that back since you are getting rid of debt then you income should increase good luck
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