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Question: the wife wants to take out a home-improvement loan to install solar panels etc. she has credit card debt and our mortgage. I maintain a home equity loan to pay all of the above would be wiser. Esp. as interest rates are lower now. any thoughts on this , people?

Answer: Bankers refer this type of loan and a “blouse on the house” loan. Getting a home equity loan to pay off credit card debt is very dangerous. Why would you want to put your home at risk just to pay off clothes, dinners, gasoline, and things you don’t even remember what you bought, etc.

Pay off your credit cards and use a home equity loan to IMPROVE the value of your home.

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Filed under: Home Equity Loan