Should I roll my heloc to a lower interest fixed CC?

I have about 50K on my heloc at over 6% fixed for 15 years. I have been getting a lot of credit card offers and a recent one is a 2.9% on balance transfers for the life of the loan with a $75 max fee.

Does it make sense to pay off my heloc as much as my CC limit allows, probably close to payoff, so that I pay a 2.9% interest on it for life but lose the tax deduction on the heloc at %26gt;6%? Or should I just stick with my heloc since CC are sometime quite shady with their practices?

Thanks in advance...

Should I roll my heloc to a lower interest fixed CC?mortgage loan

The short answer is yes, but be careful. First, look at the potential benefit. Assuming a $40M transfer, your effective interest rate, including the $75 transfer fee, is no more than 3.1% if you%26#039;re taking more than a year to pay it off. If the nominal interest rate on your HELOC is 6.25% (anything under 8.25% is pretty good, by the way), then your effective after-tax interest rate (assuming only a 15% tax bracket) is 5.3%. The 2.2% difference comes to about $75 per month, which I think makes the transfer worth considering.

However, be aware that you shouldn%26#039;t use the credit card for any other purpose - most credit cards require you pay off charge balances at a much higher interest rate before any payments are applied toward the balance transfer. Also, credit cards can randomly change their due date, forcing your payment to be late. And the credit agreement usually stipulates that if you%26#039;re late - even one day - then the interest rate increases dramatically, up to 30%!

Lastly, your credit score it affected adversely whenever you have more than 30% usage on any one card. But if you have otherwise good credit, this is probably not such a big deal.

If you go for it, be careful with your payment schedule, and watch your statements like a hawk. If it%26#039;s worth $75+/month to you, go for it.

Should I roll my heloc to a lower interest fixed CC?

loan

Read the entire agreement. The cc offers are probably an intro rate and will then jump up to 18% -24% quickly.|||My opinion - leave the heloc alone. I don%26#039;t think the savings are enough to warrant having that much of a balance on a CC. If you are even one day late making the CC payment, they will charge you outrageous fees, usually about $29. And ditto what you said about the shady practices! Read the fine print too, I%26#039;d be surprised if they would extend that rate to that high of a balance (I could be wrong). The tax savings are more significant than you realize too. In year one of that loan, assuming a 25% tax rate, you would save $823.|||You may be interested in this new program. It works well with a 30, 20, or 15 year mortgage. I am currently using a HELOC (home equity line of credit) with a new software program that helps build equity fast, and will payoff my home, and other loans in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. Those who take an honest look at all the facts and figures from a reputable source will find that this system truly creates a significant advantage for homeowners. E-mail me if interested.