Home equity line of credit?

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ItalianScallion

Harley Rider
I'm thinking about using my own equity to finance a new heating & A/C system & refrigerator; @ $6,000. Does anyone think there is a better way to finance this endeavor and which institution is the best to get it from; bank, mortgage lending company, etc? Thanks all! :cheers:
 
Baja28

Baja28

Obama destroyed America
Look into INGDIRECT.com. You can get a 5 year loan at like 3-1/8% or less. You don't need to use all 5 yrs to re-pay.
 
S

smts

New Member
be careful not to use a bank. We did that once and when we refinanced, the bank would not "subordinate". When I asked the credit union what that meant, they said that the bank refuses to be the secondary loan, they want to be the primary. We ended up having to refinance that into our loan to get rid of them.
 
b23hqb

b23hqb

Well-Known Member
PREMO Member
ItalianScallion said:
I'm thinking about using my own equity to finance a new heating & A/C system & refrigerator; @ $6,000. Does anyone think there is a better way to finance this endeavor and which institution is the best to get it from; bank, mortgage lending company, etc? Thanks all! :cheers:
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All depends on the interest rate. I have a LOC with Wells Fargo (formerly Wachovia) at 3.25%, since 2003. The interest rate will not change unless they call in the balance of the loan in total.

3.25% is incredibly low. You may be able to get it lower. Plus I have the option of paying what I want to pay monthly, my choice.

We were almost down to zero, but just purchased a used vehicle for our 15 year old daughter for $7,800. It will almost be paid off before she even gets her license.

If you can afford it, being cool and warm beats the alternative.

To me and mine, it is almost free money.
 
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jetmonkey

jetmonkey

New Member
ItalianScallion said:
I'm thinking about using my own equity to finance a new heating & A/C system & refrigerator; @ $6,000. Does anyone think there is a better way to finance this endeavor and which institution is the best to get it from; bank, mortgage lending company, etc? Thanks all! :cheers:
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You have equity in your home? Obama is going to need that to expand the nation's entitlement programs, 1%er.
 
GWguy

GWguy

*
Ok, check out 0% interest sales for fridges from the store. Can't get much better deals than that.

Do you have enough in the bank to cover the purchase of the HVAC system? See if your bank has a 'secured line of credit' or 'share secured loan'. Basically, you use the money you have as collateral and pay yourself back at relatively low interest rates.
 
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ItalianScallion

Harley Rider
The house is paid for

I have the money in my savings but, if I use it, it won't leave me with much "cash on hand", which is why I need a loan.

I think an open ended line of credit will be my best bet instead of an outright loan. Even if I only pay part of it each month, it will surely get paid off when I move

I should get a good rate and deal from my bank since there isn't a first mortgage on the house.

You folks might get a :yikes: out of this but I can't complain about my heat/AC unit. The inside unit is the original (28 years old) and the outside unit is 15 years old :faint: I take care of my stuff...

Are there any "up front" bank fees for a line of credit? I used to sell Real Estate so I know about points and loan origination fees...
 
Just Me

Just Me

New Member
ItalianScallion said:
The house is paid for

I have the money in my savings but, if I use it, it won't leave me with much "cash on hand", which is why I need a loan.

I think an open ended line of credit will be my best bet instead of an outright loan. Even if I only pay part of it each month, it will surely get paid off when I move

I should get a good rate and deal from my bank since there isn't a first mortgage on the house.

You folks might get a :yikes: out of this but I can't complain about my heat/AC unit. The inside unit is the original (28 years old) and the outside unit is 15 years old :faint: I take care of my stuff...

Are there any "up front" bank fees for a line of credit? I used to sell Real Estate so I know about points and loan origination fees...
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You used to be a realtor and are asking these questions? Something isnt right with this tread??
 
I

ItalianScallion

Harley Rider
Just Me said:
You used to be a realtor and are asking these questions? Something isnt right with this tread??
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Why not? I didn't deal much with financial rules. Points, loan origination fees and monthly payments mainly. We had financial officers to answer all those other questions. I was a licensed agent from 1985-1993 so it's been a while...
 
ProfMoneyWise

ProfMoneyWise

Member
Save up the full amount and pay cash.

Don't risk the equity in your home.

I follow the BabySteps Plan as provided by Dave Ramsey. If interested read the Total Money Makeover by Dave and give it a try. With a paid for home you are ahead of the game.
 
I

ItalianScallion

Harley Rider
ProfMoneyWise said:
Save up the full amount and pay cash.
Don't risk the equity in your home.
I follow the BabySteps Plan as provided by Dave Ramsey. If interested read the Total Money Makeover by Dave and give it a try. With a paid for home you are ahead of the game.
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I fully agree but I'm on a very small fixed income right now (long story). I have the money in my savings BUT not much more so, if I use it, I will be dangerously low on cash for other emergencies.

I went to my bank this morning and a home equity line looks real good except for one thing. They say I need to keep the loan open for 3 years or I'll have to pay @ $300-500 later for their up front costs (appraisal and other fees). I told her that I hope to sell the house next year and she said there wouldn't be a problem but I'd just have to pay those fees.

She suggested a regular loan but their interest rate is almost 9%. Can you believe they pay one half of a percent on their savings and yet want to charge me 9% for a loan. I told her :nono: ain't gonna happen. :jameo:
 
GWguy

GWguy

*
ItalianScallion said:
I fully agree but I'm on a very small fixed income right now (long story). I have the money in my savings BUT not much more so, if I use it, I will be dangerously low on cash for other emergencies.

I went to my bank this morning and a home equity line looks real good except for one thing. They say I need to keep the loan open for 3 years or I'll have to pay @ $300-500 later for their up front costs (appraisal and other fees). I told her that I hope to sell the house next year and she said there wouldn't be a problem but I'd just have to pay those fees.

She suggested a regular loan but their interest rate is almost 9%. Can you believe they pay one half of a percent on their savings and yet want to charge me 9% for a loan. I told her :nono: ain't gonna happen. :jameo:
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Again, check into the share secured loan. Yes, the money in your account becomes unavailable at first, but as you pay off the loan, the money is released back to you. The faster you pay it off, the more quickly you get access to your saved money. CPFCU rates are along the lines of 2.5% over prime which is currently 3.25%, so that's 5.75%.
 
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