Ask Mike! »  Home Equity & Debt

Q: Can I use my home equity to pay off high credit card debt?

A: There are several smart strategies for people needing to get their monthly payments under control. Utilizing your home's equity is one method that can save you in more than one way.

First, your monthly payments would be consolidated into one lower payment. Second, mortgage interest rates are typically lower than credit card or installment loan interest rates saving you money over time. You may even be able to use the mortgage interest as a tax deduction. Please consult with your tax advisor.

Credit card debit is not designed to ever be paid off. You can structure your equity loan so that you can be debt-free in a reasonable time frame.