Home equity line of credit to pay off student loans?

[Paxil_Rose]

I bought a house beginning of this year and now has about 80k equity. I'm just wondering whether HELOC is a good option in the future when my house equity far exceeds my student loans. I currently have 200k+ loans so it's not like I'm gonna go into this right now. I just wanna hear opinions from people who've done it ‍♀️


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[deleted480308]

I bought a house beginning of this year and now has about 80k equity. I'm just wondering whether HELOC is a good option in the future when my house equity far exceeds my student loans. I currently have 200k+ loans so it's not like I'm gonna go into this right now. I just wanna hear opinions from people who've done it ‍♀️


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No no no

 

[Rouelle]

I haven't done it, but it seems like a horrible idea.

 

[trailerpark]

I always read the threads about student loans and have never heard this being recommended.

 

[radio frequency]

1. How did you get $80k in equity already with $200k in student loans?

2. This is generally a horrible idea; HELOCs are variable rate and slated to increase in rate.

3. But at least the HELOC would be discharged in bankruptcy, unlike your student loan!

 

[confettiflyer]

I would not encumber your real property with student loan debt.

Presuming you have federal loans, you essentially turn a debt with extremely flexible terms in case of job loss into one where missing several payments could have you foreclosed upon and homeless.

Maslow's hierarchy...shelter before others (aside from food).


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[confettiflyer]

1. How did you get $80k in equity already with $200k in student loans?

Lol I have like $300k in equity but $240k in student loans. Granted, 2/3 of that was probably from the down payment.


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[Paxil_Rose]

lol thanks for the insight guys. I had no idea this was an unpopular method lol


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[Paxil_Rose]

1. How did you get $80k in equity already with $200k in student loans?

I got really lucky. The seller was desperate to sell and I got it for 452k. At the same time, the house next door was also for sale for 500k and someone bought it. My zestimate is currently 523k


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[CetiAlphaFive]

Lol I have like $300k in equity but $240k in student loans. Granted, 2/3 of that was probably from the down payment.
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