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Original poster

should i use the equity from sale of house to clear all loans...

3 replies

hermykne · 09/09/2007 21:46

like car loan? clear credit card, not much, but have no loans just the regular monthly overheads
this equity is going in to a deposit account for huse purchase next year, while we rent in the interim.

OP posts:
gemmiegoatlegs · 09/09/2007 21:47

yep. cos i bet the interest on your loans is far more than the interest on your savings account. clear the debt first, IMO

Original poster
hermykne · 09/09/2007 21:52

thought so, thanks

OP posts:
flowerybeanbag · 09/09/2007 21:56

But presumably if you use the money to pay off loans rather than keeping it for your house purchase, you will have less deposit and therefore need to get a bigger mortgage to buy your new house, which effectively means you will be paying the amount back over 25 years rather than 5 or whatever?
In which case it would be more expensive to pay stuff off with it than it would to put it towards a new house and reduce your monthly mortgage payments once you are in the new place.

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