My wife and I have a home that have been appraised at 0,000. and we have an outstanding mortgage of 2,000 (3 yr. closed term 5.5%). We would like to move next summer into another house due to a new development in our neighbourhood. We have an outstanding debt of ,000 which consists of a line of credit at 7.9%, and a credit card at 9.9%.
My question is, should I refinance with another bank at their offered rate of 4.25% (open variable), and move the line of credit over to theirs (4.75%), and use the equity in the house to pay off the debt; or should I wait until next summer and use the proceeds from the house sale to pay off the debt?