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best place for a home improvement loan?
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
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best place for a home improvement loan?
There are so many options out there just wondering if anyone has any guidance. Thanks.
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Posted 5/19/14 1:47 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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best place for a home improvement loan?
No closing cost HELOC is best option usually. You have to have at least 75% LTV equity in your house though to qualify after borrowing.
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| Posted 5/19/14 2:49 PM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: best place for a home improvement loan?
I guess I don't understand the HELOC concept, really. I get that it is a "credit" but we will only availability of the funds for a few months--Like 3. Then what? Do we pay it back like a regular loan?
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| Posted 5/19/14 3:06 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: best place for a home improvement loan?
Posted by Elizhf34
I guess I don't understand the HELOC concept, really. I get that it is a "credit" but we will only availability of the funds for a few months--Like 3. Then what? Do we pay it back like a regular loan?
Pay it back and the credit stays available for future use. You can pull from it whenever, or you can decide not to pull it. It's a line of credit against the equity of your house. I currently have a 300k line of credit on my house. I am not carrying a balance currently, but I have it open "just in case".
I like HELOCs vs. any sort of loan because you typically don't pay any closing costs and the interest rates are very good (low 3's). Tax deductable too.
The only problem with HELOCs is they usually require you to keep it open for 2-3 years or else they will charge you for the closing costs. You don't need to keep a balance for 2-3 years. You can borrow 10k for instance, pay if off in 4 months and just leave the account open and available. If you sell, you would have to pay them. Talk to your lender to get more info. NEFCU has a great HELOC program.
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| Posted 5/19/14 5:21 PM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: best place for a home improvement loan?
Posted by ave1024
Posted by Elizhf34
I guess I don't understand the HELOC concept, really. I get that it is a "credit" but we will only availability of the funds for a few months--Like 3. Then what? Do we pay it back like a regular loan?
Pay it back and the credit stays available for future use. You can pull from it whenever, or you can decide not to pull it. It's a line of credit against the equity of your house. I currently have a 300k line of credit on my house. I am not carrying a balance currently, but I have it open "just in case".
I like HELOCs vs. any sort of loan because you typically don't pay any closing costs and the interest rates are very good (low 3's). Tax deductable too.
The only problem with HELOCs is they usually require you to keep it open for 2-3 years or else they will charge you for the closing costs. You don't need to keep a balance for 2-3 years. You can borrow 10k for instance, pay if off in 4 months and just leave the account open and available. If you sell, you would have to pay them. Talk to your lender to get more info. NEFCU has a great HELOC program.
This is very helpful. Thanks!
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| Posted 5/19/14 5:26 PM |
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