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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Is a Home Equity Line of Credit a good idea?
We have cc debt that will take awhile to pay off. I was just looking into Home Equity line of credits and thought this would be a great idea to pay off the cc's AND be able to save money each month so we won't have to charge.
Has anyone done this and does it work well for you?
Thanks!
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Posted 5/15/07 12:50 PM  |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Is a Home Equity Line of Credit a good idea?
we have one, of course they gave us a HUGE line of credit but we took out what we needed and pay it off each month.
It works for us
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| Posted 5/15/07 12:55 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Lisa
we have one, of course they gave us a HUGE line of credit but we took out what we needed and pay it off each month.
It works for us
Can I ask who you use as I need a recommendation. You can fm if you want.
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| Posted 5/15/07 1:08 PM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: Is a Home Equity Line of Credit a good idea?
I think it is if your interest rates are higher than the heloc rate it makes sense. Just make sure you can pay the heloc because it is secured by your house and they can forclose if you dont pay...
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| Posted 5/15/07 1:17 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Is a Home Equity Line of Credit a good idea?
I never think it's a good idea to pay off credit cards with your house- but that's just my opinion
I think it should be used to add value to the house- not take equity out
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| Posted 5/15/07 1:19 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by antoinette
I think it is if your interest rates are higher than the heloc rate it makes sense. Just make sure you can pay the heloc because it is secured by your house and they can forclose if you dont pay...
By looking online, it looks like I would be saving more than half each month of what I am paying now for the cc's.
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| Posted 5/15/07 1:19 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Beth1210
I never think it's a good idea to pay off credit cards with your house- but that's just my opinion
I think it should be used to add value to the house- not take equity out
Even if it is only a 10 year Home equity line of credit?
To me that isn't too long to get everything cleared up and by saving the extra money each month, we won't have to use the cc's.
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| Posted 5/15/07 1:20 PM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: Is a Home Equity Line of Credit a good idea?
Its prob better to do the 0% cards But its better than paying 28 % interest on cards provided you can pay it back...
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| Posted 5/15/07 1:26 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
Name:
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Re: Is a Home Equity Line of Credit a good idea?
We met with a Financial Advisor and this was what was suggested to us. We did and we are sooo happy we did
The weight was lifted off our shoulders.
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| Posted 5/15/07 1:28 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by 5ofClubs
We met with a Financial Advisor and this was what was suggested to us. We did and we are sooo happy we did
The weight was lifted off our shoulders.
Can I also get a recommendation from you? I was just figuring it out and what a weight that would also be lifted off our shoulders. We would be able to put the extra cash away each month so we wouldn't have to charge things that we need. To me, 10 years is not alot.
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| Posted 5/15/07 1:32 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Is a Home Equity Line of Credit a good idea?
Posted by hazeleyes33
Posted by Beth1210
I never think it's a good idea to pay off credit cards with your house- but that's just my opinion
I think it should be used to add value to the house- not take equity out
Even if it is only a 10 year Home equity line of credit?
To me that isn't too long to get everything cleared up and by saving the extra money each month, we won't have to use the cc's.
I guess it depends how much debt you have- and what rates you are paying
if it's not a lot of debt- I think you are better off with transfering balances rather then risking your house if you default
a HELCO is more or less a credit card- and it's rare to find a fixed rate- the normally adjust- don't just go by what you see online- those are generally teaser rates
and there will be fees invloved in the getting the HELCO
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| Posted 5/15/07 1:32 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Beth1210
Posted by hazeleyes33
Posted by Beth1210
I never think it's a good idea to pay off credit cards with your house- but that's just my opinion
I think it should be used to add value to the house- not take equity out
Even if it is only a 10 year Home equity line of credit?
To me that isn't too long to get everything cleared up and by saving the extra money each month, we won't have to use the cc's.
I guess it depends how much debt you have- and what rates you are paying
if it's not a lot of debt- I think you are better off with transfering balances rather then risking your house if you default
a HELCO is more or less a credit card- and it's rare to find a fixed rate- the normally adjust- don't just go by what you see online- those are generally teaser rates
and there will be fees invloved in the getting the HELCO
Thanks. I will definately look into this. Yes, it is alot, about $40,000.
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| Posted 5/15/07 1:34 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
Name:
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Re: Is a Home Equity Line of Credit a good idea?
We have a locked rate. I will FM you the info a little later if that is ok.
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| Posted 5/15/07 1:41 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Is a Home Equity Line of Credit a good idea?
[
Thanks. I will definately look into this. Yes, it is alot, about $40,000.
that's a decent amount- in that case I would look into it- but only b/c I bet you have alot more equity in your house then you realize sine you bought before the peak
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| Posted 5/15/07 1:41 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Is a Home Equity Line of Credit a good idea?
we went to Chase Bank...and there were no fees for us to get the line of credit
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| Posted 5/15/07 1:41 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Lisa
we went to Chase Bank...and there were no fees for us to get the line of credit
Thanks. Is there closing costs? I just quickly looked up online today and I saw some places charge closing costs. Maybe that is for a Home Equity Loan, not line of credit?
Do they then come and appraise your home?
Sorry so many questions!
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| Posted 5/15/07 1:42 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by 5ofClubs
We have a locked rate. I will FM you the info a little later if that is ok.
That is fine. Thanks!
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| Posted 5/15/07 1:42 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Beth1210
[
Thanks. I will definately look into this. Yes, it is alot, about $40,000.
that's a decent amount- in that case I would look into it- but only b/c I bet you have alot more equity in your house then you realize sine you bought before the peak
Thanks. Yes. We have quite a bit now.
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| Posted 5/15/07 1:43 PM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: Is a Home Equity Line of Credit a good idea?
I think it's a good idea.
Not only will your interest rate and payments be less, but you can write off the interest at the end of the year, no?
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| Posted 5/15/07 1:44 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Is a Home Equity Line of Credit a good idea?
Posted by MikesWife
I think it's a good idea.
Not only will your interest rate and payments be less, but you can write off the interest at the end of the year, no?
Yes....opposed to CC interest, that you get nothing back for...
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| Posted 5/15/07 1:46 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by MikesWife
I think it's a good idea.
Not only will your interest rate and payments be less, but you can write off the interest at the end of the year, no?
Really?! That sounds great. I know my sister has this and she has updated her entire house. I just know that I have to make sure the amount is not too high that we won't be able to pay if something happens to our jobs.
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| Posted 5/15/07 1:46 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Lisa
Posted by MikesWife
I think it's a good idea.
Not only will your interest rate and payments be less, but you can write off the interest at the end of the year, no?
Yes....opposed to CC interest, that you get nothing back for...
That sounds great!
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| Posted 5/15/07 1:46 PM |
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Maathy317
Grammie's Little Man
Member since 2/06 3235 total posts
Name:
D
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Re: Is a Home Equity Line of Credit a good idea?
I'm going to be the one in the minority here. A credit card is unsecured debt. A home equity line of credit is a secured debt. No one knows what the furture will hold. If anything happens and you are unable to pay the HELOC, your house is on the line because that is what you use as security. The economy is good right not, but, could take a turn at any time. For me, my house is something I wouldn't take a chance with.
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| Posted 5/15/07 6:16 PM |
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lorich
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Member since 6/05 9987 total posts
Name:
Grammie says "Lora Gina"
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Re: Is a Home Equity Line of Credit a good idea?
Posted by Maathy317
I'm going to be the one in the minority here. A credit card is unsecured debt. A home equity line of credit is a secured debt. No one knows what the furture will hold. If anything happens and you are unable to pay the HELOC, your house is on the line because that is what you use as security. The economy is good right not, but, could take a turn at any time. For me, my house is something I wouldn't take a chance with.
I agree.
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| Posted 5/15/07 6:18 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: Is a Home Equity Line of Credit a good idea?
I think a HELOC is a good idea in this case with $40,000 in credit card debt at a presumably higher rate than the HELOC. Credit card debt is looked at less favorably than an HELOC when calculating your credit score.
We are investigating this now. Chase is offering a "no cost HELOC" at prime minus 2.26% for 6 months and then prime minus .76% thereafter for credit scores of 720+. Of course it's not really no cost but the fees are rolled into the loan although there is no out of pocket cash required to close.
Your home will likely be your biggest assest and there is no reason to have a house that is paid off in full with $40,000 in what I presume is higher interest credit card debt. You have to be disciplined though and not charge up another $40,000 on the cards once you get them paid off with the HELOC.
Also, not sure if you have kids but another time to tap into home equity will be when it's time to pay for college.
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| Posted 5/15/07 6:27 PM |
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