The quick answer is that you will need to read the terms and conditions of the account that is offering the 0% for 12 months, but I would imagine that the home-equity line of credit is not the type of debt for which the issuing bank will allow a balance transfer.
That would be one heck of a good deal if it were. Your equity line is secured by your home, so if you pay that off with an unsecured loan at 0% you are extinguishing a lien on your home equity freeing it up for other uses at no cost to you — at least for the 12 months. You could not pass up that offer. There are some factors that may diminish the value of such a deal.
If you have high interest credit card debt to transfer this is still a good deal IF the terms and conditions of the transfer card extend the 12-month, 0% offer to cash advances, purchases as well as balance transfers. Meaning, you could transfer your high interest credit card debt to this zero percent offer... or just take a cash advance (if possible) and use the proceeds to pay off other high interest debt — including the Home Equity Line of Credit (HELOC)!
Also, make sure that you can pay down the advanced or transferred balance, because when that "teaser rate" expires. The interest on your new debt may shoot back up to stratospheric rates because most credit cards carry much higher rates than home loans, since they are unsecured.
You could also look to apply for a refinance of your entire mortgage, to lock in a low rate — ideally a 30-year fixed rate that could give you peace of mind.
Bills.com has partnered with many providers who can help you on this.
Best,
Bill
www.bills.com/
Loading more commentsSince you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
We get a lot of comments! To help us show our boss that this is a valuable service, so we can keep providing it, we ask you to do 2 things before commmenting:
Log in
Like us
Submit your comment!
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
Thank you for your comment. Your comment will be posted shortly.
No Comments