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Equity Line of Credit
Old 11-02-2006, 10:08 PM   #1
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Equity Line of Credit

I am in the process of rolling over my 401K ($265K) to Fidelity. I'll be taking a distribution from my Retirement fund in Jan. I plan on selling my home in four years ($400K equity to date). I owe 30K on my equity line of credit. $10K at 8.35% and $20K at 7.5% interest. Does it make sense to take $ from my retirement and pay off the loan now, or wait until I sell my house?

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Re: Equity Line of Credit
Old 11-03-2006, 06:40 AM   #2
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Re: Equity Line of Credit

Depends on your tax situation... you have to do the math...

I would tend to lean on paying off these higher rate loans if it does not cause other problems...

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Re: Equity Line of Credit
Old 11-03-2006, 07:48 AM   #3
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Re: Equity Line of Credit

John, are you over 59.5 so can you take the distribution without penalty?

No more lawyer stuff, no more political stuff, so no more CYA

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