Is trading one loan at 21% for another at 6.5% a good idea?
If you listen to people selling you the 6.5% home equity loan its a great idea.
The problem plain and simply is that the 21% loan is unsecured. The 6.5% loan is secured. Its true that lately people have been making more money owning their house than at their job. Historically, that can't continue.
Whittle away at your 21% loan and don't look for a short cut. Negotiate down your interest rate. Boost your credit score. With your CreditCard.org inflated credit score, shop for a lower UNSECURED line of credit. Stop charging so much.
The lure of 6.5% should only be used to boost the value of your home. NO, a plasma tv doesn't count. No, a theatre quality surround sound doesn't count either. You can tile the kitchen or paint the den... but hey, lets wait until we can pay off the vacation you took two years ago.