No. of Recommendations: 0
Why would you only move $4k to Citi? At one point, your balance was about $16k there, wasn't it? Why would you not move $14k - $15k there, getting your BoA down below $30k? At that point, you may have more luck with getting the rate down on BoA.

I would BT upto $14k if the offer was good enough. $4k because I currently have a 0% for 6 months then 17% and that is what I could safely pay-off in that time-period (no transfer fee). I will see what this month's offer is.

Don't you already have 2nd on your house ('Chase 20')? Would this loan replace that one, so that it would now be ~$60k, or would it be a 3rd loan on your house?

What are the costs associated with getting this loan? As an FYI - both 3rd loans and 'cash-out' loans generally come with higher fees and/or higher rates.

Do you have $40k in equity in your home? If not, getting a loan for more than the equity in your home will probably be at a higher rate than you expect.

Disclaimer: I have not looked into the details. I thought that before I started researching and talking to my bank that I would post here.

Based on last attempt for a HELOC in 12/06 - The net was a HELOC at 7% for $35k that replaced my 2nd mortgage with no fees. Everything was good including the home appraisal... except for that minor detail of my credit score and on closer inspection my credit reports. Tax appraisal and zillow both say home value is up another $20k. So, I think $40k is a safe bet with no fees. Now, this adjustable rate you mention I am not interested in. So, maybe that means I am strictly looking at a HEL. Not sure.

As far as being 'upside-down' in your home - unless you have at least 8% - 10% equity left after the loans, you probably will be upside down in your home.

It will be close and what will put it over the edge is that if I did move anytime soon... I would probably be a "motivated seller" thus brining a check to the closing of my own home.

You need to ask yourself this question - will putting the debt into a debt secured by your home diminish your urgency on paying down the debt? Once you get the credit cards and other debt paid off, will you continue to snowball the new HEL/HELOC? Or will you/DW be tempted to do other things with your snowball money? If you will be tempted to do other things with the snowball money, you may not be ready to put this debt onto your house.

It is bad debt. I will move it up in the spread-sheet with the other un-secured debt. I think we will be tempted (now that it has been brought to my attention)... but, my mind-set is just another part of the debt that is to be snowballed and paid asap.


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