This ought to guarantee even more people will lose their houses. Pay off your credit cards and gamble with your home. Yea, that way proving you’re to fucking stupid to be a home owner will be much easier.
Now you see why I want to be reincarnated as a bank. Much more fun taking advantage of nitwits than collecting interest. And if I play it right I make a fat profit by selling the house as new home formation bumps up the price. (It always does.)
Pay Off a High-Interest Credit Card with Home Equity?
by Brian O’Connell on 12/15/2010
Credit Card DebtSome consumers are paying off their high interest credit cards in an inventive way – with a home equity loan. It’s not always the best solution, but it can be a good cure for your high interest headaches under the right conditions.
In general, home equity loan interest rates are lower than the rates on your credit cards. There’s a reason for that. HELOCs are backed by a demonstrable asset (your home). Credit cards aren’t backed by such a big asset and thus arrive with a higher interest rate attached.
Rates on a conventional $30,000 home equity loan is about 5.10% these days. But interest rates on most credit cards average between 14%-and-16%. Rates on both HELOCs and credit cards are based on your credit score, so the higher your score, the better you’ll make out on interest rates.