Advice on using convinience checks to payoff mortgage

Submitted by Arya on Fri, 11/13/2009 - 13:54
Forums

I have always had good credit and recently recieved an intriguing offer from a credit card company. They sent some convenience checks with no transaction fees, and 3.9% APR for the life of the balance. I have a credit limit of $35K on this account. I owe about $39K on my home mortgage which is financed at 6.5% and I have about 11 years left to pay. I am considering using the convenience check plus a little savings to pay off my mortgage. I have used various mortgage / credit card calculators and they all show that if I make the same monthly payment I could pay off my house 5 years earlier if I go with the convenience check at 3.9% APR. Nevertheless, I am concerned that having $35K on revolving credit will negatively impact my credit score. However, I don't plan on making any major purchases in the next year or so. What is your advice?

In my opinion if you are having your health insurance policy and if you are not planning to purchase any new home in coming future then you should go ahead with the deal as it will save lot more money for you in long term.as you will be able to enjoy your retirements with more funds in 401k.

keep us informed.

Sat, 11/14/2009 - 18:23 Permalink