tax
Question: Because the interest is tax deductiable, sometimes you are better off >getting a home equity loan. If you still pay it off in the amount of >time it would take to pay off the credit cards, I think its a good >idea. If you let it drag on for 15-20 years, your making a mistake.
Answer: You are absolutely right IF you pay it off over the same term as the original debt. But one of the points the original poster was making was the ability to extend the debt out over a long term, and this is what I object to. Even with the deductability of the interest, when you extend debt out over a 15 year term (which is a normal term for this kind of loan) you end up paying 2 – 3 times the original debt just in interest payments. That isn’t frugal at all!
Related Posts
Filed under: Home Equity Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.