conversation: User (ThrowAwayIdears): "I own my home, free and clear.  No mortgage.  It's worth about 140K.\n\nMy husband owes about $65K in student loans, with rates between 2.5-7.9%.  (The only debt in my name is a $2,600 cc that is being rapidly paid down).\n\nWould it be a really dumb idea to take out a loan against the house and pay everything off at once?  I don't like all the different loans/rates/bullshit, and would like one nice, tidy payment each month.  \n\nI'm not set one way or the other, and would like your thoughts, PF.  Thanks!"
  Self: "Be very careful about this.  Let's say some worst case scenario hits (suddenly unemployed?) and you are unable to make the payments on your home loan.  In just 2-3 months you could be facing the loss of your home due to a (perhaps) uncooperative bank who wants to take your home due to the equity compared to the loan value.  $65k loan nets a $140k house?  Bank wins, you lose.  Good bye house.\n\nWith student loans you just get late payment marks and your credit gets dinged for two years.\n\nRisking your house is, in my opinion, the biggest mistake you could ever make in this situation."
  