A couple bought a $300,000 home four years ago using a 15 year loan with an annual rate of 4.5% and a 20% down payment. What would be their monthly payments? Today they want to use a home equity line of credit to pay off some credit card debt. How much equity do they have assuming the house is now worth $310,000? What are the trade offs of using the line of credit to pay off the credit cards?