Line Of Credit
That's ridiculous! Union Planters deploys humor in HELOC campaign.(Marketing News)(home equity lines of credit): An article from: Bank Marketing [H] [T] [M]
(Digital) Bank Marketing Assn. 2004-05-01
Release date: 2005-07-31
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Answers
I just refinanced my home to get a fixed rate and now I want to open a line of credit account.
You might not be able to get a 2nd mortgage so quickly. It will depend on your equity in the house.
HELOCs aren't such a good idea right now because the interest rate fluctuates with the prime rate and it could jump every month.
A home equity loan and a home equity line of credit both provide money from the value of your home. But each one has its pros and cons.
Would a Home Equity Line of Credit or loan used to buy a home be considered a Home Aquisition Debt instead of a Home Equity Debt?
For HELO interest on principal beyond $100k to be deductible, the proceeds must be plowed back into the property pledged as security. If it's used for any other purpose, the interest on the amount of the loan over $100k is non-deductible. To be considered as acquisition debt, the property acquired must be the security for the loan.
I want to open a home equity line of credit. I have 100% equity in my house and an excellent credit rating. I am planning on moving, but would like to buy another house first, and then sell my current house (which would sell for a higher price than the one I would buy).
If I use the equity line to buy a house, would the bank permit me to sell my current house and pay them off at the closing? Kind of a bridge loan without the fees.
I agree with Ibu Guru, I think you are making a big mistake, do not use a loan to get another loan, payoff the first house and save to purchase another, remember that the people who are being foreclosed are those that have mortgages.
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$4.75
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My husband and I are debating how to finance some home improvement projects. He says use savings, I say use a line of credit(repay within two years hopefully) I am afraid if we use savings we will never replace it. He doesn't want debt. Any opinions?
If you got the equity then go with the HELOC. If the home improvements are going to increase the value of your home then it's a no brainer. As long as you're not going to buy a car or take a vacation with it. Leave your savings alone.
...OR say you can get a HELOC @ 6% APR. Then the money in your savings account that you would have spent on your house - put that money in a CD (or some other investment vehicle) that earns 6% interest and then you're pretty much getting your home improvements for free. If you got 6% going out then see if you can get at least 6% coming in.... and then you'll make that much more when you sell the house because you didn't really pay much for the improvements.
Does anyone know the typical point for a home equity line of credit ? By point, I mean the up-front fee that is proportional to the credit limit. So if the term asks for 5 points (5%) and the line of credit is $100,000, there is a $5,000 fee. Do you think that the numbers I've just mentioned are a pretty good deal, assuming that the interest rate is good? Thank you.
The minimum equity needed for a HELOC is 10% but it may be difficult to qualify for that and there will be fees on top of that. A typical HELOC requires you to have 25% equity/down-payment and ok credit (Your credit doesn't have to be perfect... If you applied for a credit card today, would you be approved? If yes, then your credit is good enough to qualify).
5% will only get you a typical mortgage.
Buy Cheap
Economic Outlook: Homes closely watched
If the centerpiece of the U.S. economy is jobs, the centerpiece of commerce is housing and home prices fell flat in October, a closely watched index said.
The catchphrase here is "closely watched." That tag line, frequently seen alongside the Standard & Poor's/Case-Shiller home price index is doubly critical these days in an economy rocked hard by a collapse of the subprime mortgage market. Now, with a quarter of U.S. homes underwater -- that is, with loan balances worth more than a house's selling price -- it is easy to see how foreclosure becomes the financial decision of choice. If a family cannot afford to sell their current home to move, either because the kids have grown and gone or because the kids are growing, or because a job -- at 10 percent unemployment, what job? -- is beckoning elsewhere, the family cannot move forward.
News
Credit crunch: Home equity lending evaporatesChicago Sun-Times - Dec 28, 2009
He planned to pay for the project with his $200000 home equity line of credit, which he took out in January 2007 when his house was valued at $750000. and more »PR-inside.com (press release) - Dec 29, 2009
A consolidation loan provides a line of credit to the consumer in which all their other unsecured debts can be transferred and combined for the convenience and more »Philadelphia Inquirer - Dec 28, 2009
What Harry says: It would have been easier to get a home-equity line of credit (HELOC), and it's not too late to try. You would have fewer fees and you and more »UPI.com - Dec 30, 2009
Telegraph.co.ukThat tag line, frequently seen alongside the Standard & Poor's/Case-Shiller home price index is doubly critical these days in an economy rocked hard by a Latest Case-Shiller Housing Report and Its Ramifications: Seeds of a 2010 Crisis?Turnaround in housing market expectedNorth Jersey homes prices flat in Octoberall 849 news articles »
Wall Street Journal - Dec 28, 2009
"The banks have really tightened up, so it's harder and harder to get a home-equity line of credit," Mr. Richardson says. "If you don't budget for repairs, and more »Examiner.com - Dec 28, 2009
For those of you with a Home Equity Line of Credit (HELOC) this is an opportune moment to create a strategy about how to handle it.Chicago Sun-Times - Dec 26, 2009
MonitorBankRates.comRecord-low mortgage rates, but many can't refinanceThe lender might refuse to subordinate, or if you have a line of credit, the lender might come back and say they'll subordinate the loan -- but only if you Mortgage Rates: Current Mortgage Rates Back Above 5.00%Lack of mortgage backed securities buyers could cause 2010 mortgage rates hikeall 97 news articles »