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A Heloc is a home equity line of credit . . .better because they gennerally don't have any fees, worse because they're variable. I'm horribly conservative when it comes to this kind of thing, but in this case the refi. is looking really good. Your fees would be made-up in less than 2 years (depending on the amount of the loan-- bigger = faster . . .I guess I should have asked about that too) just on the change in interest rate. Allowing you to also not pay the 10 or whatever per cent you're paying on your credit cards is just an added bonus. A few hints: 1) Don't take the max on the refi. Take what you need and maybe a little bit for an emergency fund. You don't want to end up inside out if for some reason you have to sell. 2) Don't change your spending habits to match your new feeling of wealth. (Lots of people give up lots of equity in their homes to get basically nothing because they change their lifestyle to a more expensive one.) 3) Make sure your new loan allows you to pay early and do it! 4) Make sure the new loans doesn't force you into a weird position like having to pay PMI.