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https://boards.fool.com/i-was-considering-paying-down-the-equity-loan-i-21002618.aspx
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| Subject: Re: Equity line / RE Taxes | Date: 7/9/2004 5:00 PM | |
| Author: TMFPMarti | Number: 72479 of 132130 | |
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I was considering paying down the equity loan I have on my home (rate is tied to prime) with the money I would normally be setting aside for RE taxes. My thinking was that since you can't earn any significant interest in a savings account it would be better to pay down the equity loan. I would then pull out the necessary funds from the equity line to pay the RE taxes. Does that sounds "foolish"? IMO paying off the HELOC would be "Foolish." As long as your HELOC balance is going down overall and you don't incur transaction fees, temporarily reduing the HELOC balance with your tax money sounds OK. If the HELOC isn't going down overall, you're paying necessary expenses with borrowed money, and that's not a good idea. Phil |
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