I currently have a $560k mortgage and took out an additional $105k HELOC piggy back loan to make up the 20% needed for the Jumbo loan last year. I've been saving for the past year and a half and now have $100k in savings. Should I be paying down the HELOC early or investing/saving the money? the HELOC is variable with a current 5.95 APR
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2I'm closing as a duplicate, although I disagree with the accepted answer. I had given basically the same answer as the highest-voted answer but deleted it to close as a duplicate. Pay off the HELOC as soon as you can, saving a little for an emergency fund if you wish.– D StanleySep 28, 2017 at 22:22
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1I agree with D Stanley. I say pay off the HELOC and use it as your emergency fund until you have enough in cash. There's a small chance the HELOC could be taken away, but with good credit and good income I wouldn't be concerned about that.– TTTSep 29, 2017 at 1:17
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This question was asked on the heels of two devastating hurricanes, which home owners discovered they have high deductibles, around 2% of home value. For the OP, that would be at least 10K. Many are struggling as they are over leveraged. Pay off the HELOC and get an emergency fund.– Pete B.Sep 29, 2017 at 11:33
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another agreement. Get the HELOC out of your life ASAP. Debt is risk, and debt with a variable APR is playing with fire.– rocketmanSep 29, 2017 at 20:02
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