If you are a homeowner and purchased your home prior to 2022, there is a great chance you are sitting on equity.  With consumer credit debt interest rates spiking – now is a great time to take advantages of monthly savings with a home equity line.

In 2021, in New Jersey the average household credit card debt is nearly $9,000.  The average household debt number can be misleading and some consumers pay off their balances each month.  That means that many consumers are carrying debt much higher than $9,000.

A client with $20,000 in credit card debt will make a minimum monthly payment of approximately $450.  It would take 12+ years to payoff based on the minimum payment.

A 10 year fixed rate home equity line with a 9.5% interest rate (rate for example purposes only) would carry a monthly payment of $260. The monthly payment is reduced by $190 and the total balance is paid off in less time with less interest over the life of the loan.