By Bruce Williams
DEAR BRUCE: My husband and I are planning to get a home equity loan. Our mortgage balance is $150,000 and the house is valued at $475,000. Our monthly mortgage payment, including insurance and taxes, is $1,010.
The bank told us we can apply for a credit line up to $50,000 with an interest of 2.99 percent. Our plan is to get a loan of $20,000 to pay off our credit cards (about $7,000) and use the rest for house repairs. We think we can save by paying off the credit cards since the interest on them ranges from 14 to 25 percent.