I just alluded to this in another thread. Monetarily, it seems to make
a lot of sense -- you'd be paying 3% interest instead of 4-5% interest
depending on your marginal tax bracket. If you continue to make the
same payment you make on your second mortgage, you'll save thousands
of dollars of interest over the life of the loan.

The thing to keep in mind is that if you go above 50% (and 70%) of
your CC limit, it'll lower your credit score. Again, if you don't see
the need for credit, this shouldn't be an issue.

Also, CC companies can be ruthless in terms of raising rates, etc. But
if you don't mess up, and they want to change the terms, they usually
will give you a chance to close and keep paying under the old terms.

--Ram

cxy2002um[at]gmail.com wrote:

- quote -

In article <1103297049.022095.231010[at]z14g2000cwz.googlegroups.com> ,
cxy2002um[at]gmail.com wrote:

- quote -

The big pro is that you will have a lower interest rate. A
second pro is that you converted secured debt to unsecured
debt, which removes the lien from your house.

The cons are that you will lose the mortgage interest deduction
on this loan (assuming that you have one and that it makes
a material difference on your taxes) or that something might
happen to trigger the interest rate escalation clause (which
could take the loan to 21.99%).

I don't have a problem with you moving this loan to credit
cards so long as you plan to pay if off over the same period
of time (or faster), and that you are meticulous about making
the monthly payment as early as you can, always, and then
verifying your account to ensure that it is credited before
your due date. If there is any chance of missing a payment
or having a late pay, then don't use the credit card method
since the 21.99% deadbeat rate will kill you. You might also
want to keep your home equity line of credit open in case you
need to bail out of the credit card plan for some reason.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

I have a second Mortage on my new home purchased in October 2004 for
roughly $25,000 at 7 1/4 interest rate. I have a couple of special
deals on my credit cards that offer 2.99% APR for life of the balance.

Does it make good sense to move this $25,000 debt from the 2nd Mortage
to this credit card? I don't plan on making any more big purchase for
another 4 years (a car at that time). What are the pros and cons if I
choose to do so?

Thank you.

--Scott