Should I Pay Off My HELOC?
Paying off a HELOC can make sense when it is your highest-cost debt, you have stable income and an emergency fund, and you want to reduce variable-rate payment risk. It is usually less attractive if doing so would drain your cash reserves, cause you to miss higher-interest debt payments, or trigger prepayment penalties. Compare your HELOC rate with other debts and potential investment returns, review any fees, and consider speaking with a financial or mortgage professional before committing a large sum.