Equity Loan Advice

Should I pay my home loan or pay your credit cards?

Hello. My mortgage is the only interest can be solved and now I'm paying something like 7.02 (I have a rate of 1.25 below prime). Also, credit card debt on two cards, but was fixed at 4.02 and 4.99. I know it's usually best not to have credit card debt, but since rates are fixed and lower than my HELOC, I work for the HELOC to pay first (I have twice as much on my HELOC as I do on my credit cards). Thank you.

Let's look at the interest rate after taxes on the HELOC is tax deductible: This assumes that you are in the range of 25%. HELOC = 7.02% service tax = 1.76% After the effective tax rate Credit Card = 5.26% = 4.02% to 4.99% of the Tax Benefit from = 0% effective tax rate = 4.02% to 4.99% These percentages are, should be compared. Even with the tax benefits taken into account, pay more for the HELOC but rates are very close. In short, pay what you are paying is more elegant. Personally, I would credit card with the lowest …… initial evaluation, but is only my …….

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