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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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spinoff to: home equity question
would your child's college education be a good reason to borrow against your home?
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Posted 4/4/07 11:16 AM  |
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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: spinoff to: home equity question
my Dad did
but this was back in 1995- on a house he bought in 1976 for $50K
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| Posted 4/4/07 11:20 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to: home equity question
thanks. was just wondering
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| Posted 4/4/07 11:24 AM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: spinoff to: home equity question
Posted by Beth1210
my Dad did
but this was back in 1995- on a house he bought in 1976 for $50K
Mine too, they bought their house in 1975 for $60k and took it out in 1993.
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| Posted 4/4/07 11:34 AM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: spinoff to: home equity question
I think that it would be a good reason. But I would have to evaluate that on a case by case basis. I think using your home to finance your childs education is much better than using your home to finance you luxury vacation/SUV/Boat etc.
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| Posted 4/4/07 11:38 AM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: spinoff to: home equity question
yes my parents did. I dont see the problem in borowing against your home if you have a fair amount of equity in it- if its close i wouldnt.
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| Posted 4/4/07 11:38 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: spinoff to: home equity question
it would depend on the interest rates.
my student loan interst rate is lower than a HELOC or a home equity right now, so that wouldnt make sense.
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| Posted 4/4/07 11:48 AM |
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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: spinoff to: home equity question
Posted by Meaghan729
it would depend on the interest rates.
my student loan interst rate is lower than a HELOC or a home equity right now, so that wouldnt make sense.
good point
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| Posted 4/4/07 11:53 AM |
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july06bride
I'm a mom!
Member since 5/05 3966 total posts
Name:
Nicole
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Re: spinoff to: home equity question
my parents did , on our house which they bought for about 47,000 , YEARS ago
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| Posted 4/4/07 12:03 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to: home equity question
this is all good information to have in the back of my mind when i'm ready to send "jr" off to college.
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| Posted 4/4/07 12:06 PM |
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mka06
LIF Adult
Member since 8/06 1079 total posts
Name:
Melis
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Re: spinoff to: home equity question
yes - i think it's a good reason - if it wouldn't put the person in financial distress.
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| Posted 4/4/07 12:12 PM |
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BlueDiamonds
mommy to 3 boys
Member since 2/07 3885 total posts
Name:
proud mommy
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Re: spinoff to: home equity question
personally, i wouldn't rely on it. if the time comes and we are not prepared, then maybe we would consider it.
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| Posted 4/4/07 12:32 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: spinoff to: home equity question
another thing to consider: student loans are unsecured, your HELOC is secured by your house.
if you can get a parent plus loan (or have your child take out a student loan and pay it for them) for the same interest rate, you should do it this way because you do not have to secure it.
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| Posted 4/4/07 12:35 PM |
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Re: spinoff to: home equity question
there are also so many other ways to save for college, like tax deferred plans and such. maybe an accountant could give you more information about that. i would probably opt for a student loan over an adjustable rate loan.
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| Posted 4/4/07 1:52 PM |
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joann564
LIF Infant
Member since 9/05 266 total posts
Name:
Jo Ann
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Re: spinoff to: home equity question
If you listen to any of the finical planners they say never to borrow from your house, retirement funds etc to pay for your childrens college.
There are two reason behind it. The first is as someone said before student loans have a very very very low interest rate. The other is you children will graduate at 22-25 yrs old and have the rest of their life to pay off this debt. You on the other hand are going to be in your 40's,50's or 60's and have less time to save for retirement. It is always harder to play catch up years down the road.
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| Posted 4/4/07 6:40 PM |
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