Hey all,

Whats the general consesus on taking out a Home Equity Loan?

This would be used to consolidate debt and reduce monthly payments. We have a second child on the way, so I figured it was a good time to do so. I could lump all of my debts in and pay them all off, car included for about 60k.

Im 28, I own my house outright, current value is 540k or so, so the LTV isn't a concern. My credit is 690, so not great, but according to everything I've read, good enough to get a loan. We would go from 1250 in monthly payments on all debts down to about 570 a month @ 15 years on a Home Equity Loan. I make 83k a year, so paying it back isn't a concern either.

I really just want to make sure I'm not being dumb by taking equity out of a fully paid off house at a young age. From everything I've read, this is ok, but I wanted to hear from all yall. I've never taken equity like this. Would a HELOC be a better solution? The money would strictly be used for debts.

Thanks in advance!!!