Month: August 2016

I never thought that using equity to pay off something was a good idea

I never thought that using equity to pay off something was a good idea, either. However when we were getting financial counseling he pointed out that our auto loan is too high and our house has all this equity in it. He advised us that our interest rate is so low on the mortgage that we do this and then pay the payment we were paying on the auto regularly and combine it with the mortgage which is scheduled bi monthly to get the house paid off quicker. So many things about financing are based on your family situations and realize this isn’t necessarily an endorsement for everyone to do this.

However, in the financial advisors position this is a good move for us. He said just to sell the car and then put that money into the car. But if we are still paying the “SUV” payment back into the mortgage I don’t know how that works. That is why I was asking the question.

Thanks for your valuable input. It is nice to know that other people ponder these same life situation questions and we have a forum to discuss them.