$ dilemma: what to do w/ a 30K eq line of credit@8.5%?

Question

This equity line of credit pymt is steep for me. Rec'd offer for credit card 2.99APR fixed for life. (1st Natl Bank of Omaha) Is it better to open the credit card with the 2.99 for life? The int. won't be tax deduct. but the pymts should be more manageable. My firs mtg has 5.99 fixed & I'm 4 yrs into it. I think I should keep it as is. Thanks for any advice.

Answer 1

2.99 apr sounds too good to be true. Banks are paying the Fed 5% for short-term borrowed money. Better read the contract, including the fine print, with a magnifying glass. I can see 2.99 over the prime rate, which is a common practice.