Posted by Robert Staats on September 19, 2003 at 10:03:11:
Free advise is what it’s worth, so here goes. Unless you live in a “homestead” state, I would think it makes more sense to use your home equity line with the lower interest rate. If things go south, unsecured creditors can still go after your house. The potential exception is if you live in a homestead stae like Florida, where your personal residence is protected from bankruptcy proceedings.
You might also look for 90% financing instead of 80%. You’ll probably have to pay mortgage insurance, but you’ll be able to buy two houses instead of one with the same money.