Monthly payments on home equity loan lines of credit are low

hadesto8 · Joined: 05 Mar 2008 Posts: 2 0.80 Dollars($)

Here is and useful article , hope you enjoy it too.

A common misconception amongst borrowers is that credit card payments, even minimum monthly payments, would be cheaper than monthly home equity loan payments. Quite the reverse is true.

For each $10,000 amount that you get through a home equity loan, you would pay $60 a month with a rate of 6%. But for a credit card that you have a $10,000 debt on, you almost always would have pay a minimum payment of $300 every single month: no matter what the rate for that credit card is.

This is because credit card companies usually require their credit card users to pay 3% of their debt on their credit card as a minimum payment each month: and that minimum payment must always equals 3% of your debt: whether your credit card rate is 18% or 12%.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi hadesto,

Seems good information but you should not copy and paste any content here. Please have a look at the Forum guidelines at http://www.mortgagefit.com/terms-services.html

If you can you are most welcomed to post any suggestions and original thoughts.

Looking forward to some original thoughts and suggestions that will help the community Smile

Best of luck,
Larry

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