The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Any Advice?||Date: 1/11/2005 9:30 PM|
|Author: rookieJoe||Number: 43982 of 77872|
My situation is somewhat similar to your yours: married, wife stays home with kids, don't hold credit card debt, 1 low interest car loan, retirement savings are a priority, and a starter home.
A about a week ago we took our cash and paid off the house. Then immediately opened a home equity line of credit.
We were paying 6.74% on the loan (it wasn't enough to be worth refinancing). And we were making ~2% on the cash.
The available balance on the HELOC is more than the cash we had before, and we get/save an extra 4% (6% - 2%).
If you run the numbers in a spreadsheet, you will see that your debt will be paid off quicker if you put all your extra money towards the highest rate debt.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|