Financial Resource Center
Home Equity vs. credit cards: Which is more economical?
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 With interest rates as high as 26 percent, it's no wonder that credit card debt is one of the main reasons for increasing debt in the United States. Fortunately, there's an alternative. Compare the cost of making a major purchase using home equity financing vs. the cost of paying with a credit card:*
Amount of purchase

$
Annual interest rate on credit card
   %
Repayment time (months)

  
Annual interest rate with home equity financing**
(If you know your rate and it differs from the one shown, please enter it.) 
   %

*Assumes monthly compounding

**Rate is for example only and may not reflect current rates.
To find out current rates, please call 1-800-840-0190

In addition to being a more economical option, home equity financing may also provide certain tax advantages. (See your tax advisor for details.)

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Data obtained are estimates and not final figures. LaSalle is not responsible for incorrect calculations obtained by using this free calculator.

 

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