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MrsSchwags
Soccer Baseball Lax Mom
Member since 10/05 11240 total posts
Name:
Jennifer
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Unsecured Line of Credit
Has anyone ever done one of these. DH and I were looking into one, but we weren't sure.
The bank was telling us it was better than a HELOC because our house wasn't tied to the loan.
Positives? Negitives?
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Posted 5/16/07 4:52 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: Unsecured Line of Credit
depending on the rate- I would prefer unsecured- if you default on secured- then they can foreclose on your house
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| Posted 5/16/07 4:54 PM |
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MrsSchwags
Soccer Baseball Lax Mom
Member since 10/05 11240 total posts
Name:
Jennifer
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Re: Unsecured Line of Credit
The bank said the rate is going to be higher since it isn't tied to anything, is that true?
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| Posted 5/16/07 4:56 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Unsecured Line of Credit
Posted by MrsSchwags
The bank said the rate is going to be higher since it isn't tied to anything, is that true?
yes - it is riskier for the bank because there is no collateral - they will charge a higher rate for the risk.
If you get a heloc, the rate will be lower.
you may pay up to 12% from a bank for an unsecured personal loan
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| Posted 5/16/07 4:57 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: Unsecured Line of Credit
Posted by MrsSchwags
The bank said the rate is going to be higher since it isn't tied to anything, is that true?
it's more like a credit card- so I would think it is
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| Posted 5/16/07 4:58 PM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: Unsecured Line of Credit
True your house isn't tied to the loan, but with a HELOC the interest can be tax deductible. The unsecured line I don't think is.
Becareful with the difference in interest rates no collateral - higher risk - more you pay
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| Posted 5/16/07 5:31 PM |
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Re: Unsecured Line of Credit
An unsecured loan will have much higher rates and the existence of one will lower your credit score, if that matters.
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| Posted 5/16/07 8:29 PM |
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