Line Of Credit And Paying Off Your Home

I have a home equity line of credit paying intrest only at 8.25% on the amount borrowed against it.

Whether or not your should refinance depends on whether the money you'll save by getting a lower interest rate is less than the fees it'll take to refinance. It ususally doesn't.

2006-12-17 14:13:48 by HAAJR

The best ways to pay off a home equity line of credit are by making payments over and above the minimum payment. Find out how to pay off a home ...

I just deposited a $25K check from a well-known brokerage firm into my checking account at a well-known bank. I want to use that money to pay off part of my home equity line of credit balance at the same bank. I did this three months ago and it wasn't a problem. Nothing has changed on my end but now they want to hold the check for 15 days so I can't pay off part of my balance. This means I have to pay an unneeded $150 to them for the interest on that amount I'm not able to pay off yet. I've always seen checks cashed in 24 hours these days. Is this 15 day hold on money they already have unreasonable and should it be reported to the Better Business Bureau? Thanks.

Some banks do that, check with a supervisor at the bank and if you do not get help then go to the BBB

2006-06-07 11:16:02 by this_one_dude

I have heard of a software program that shows you how to pay off your mortgage a line of credit.

Say you run 4K a month of bills through your checking account you would on average have 2K sitting earning nothing. If you borrowed 4K from your HELOC and paid down the first mortgage you would owe HELOC on average 2K at a slighly higher rate than the first mortgage. This would cause me to want to get out of that debt as fast as I could and make me feel I couldn't go shopping while in HELOC debt so soon I would have the HELOC paid off and could start again.
It might be fun to do but you don't need a program. You could just be on a tight budget and send every cent in to the mortgage company.
Another way is if you have an emergency fund you could use the HELOC for the emergency fund and send that money to the mortgage.
I wouldn't prepay a mortgage unless the rate was awful since you might earn more somewhere else and have more flexiblity with your money.

2007-09-17 15:17:47 by bcdsm3

I have been paying on this line of credit for 3 years and becasue it has a flexible interest rate although I pay extra because the interest rates continue to rise most of the payment is almost all interest. I need help getting out of this mess but I also need to put as much money in the 401k as I can because that is not where it should be either. If I do take a inservice withdrawal I will not be able to contribute for 6 months. This means i will lose the interest on the money I take out and on the money I cannot contribute for six months. I will lose my employers 5 percent matching and the tax advantages. What do I do? I plan to retire within the next 3 to 5 years. This is such a mess. I cannot take a loan out because I did so to payoff credit cards and I can only have one outstanding loan at a time. I feel so trapped! The home equity line of credit balance is 13000 dollars.

No, don't take money out of your 401k.

If you're 3-5 yrs away from retirement then you're going to need your money in the 401k for retirement later.

Pay all you can on your loan. Pump up your payment as much as you can. Add a little here & there to it every month.

Take a second job or a part time job for a short while & apply the income from it to your loan payments.

Sell some of your stuff. Hold yard sales, go on ebay. Apply the income from your sales to your loan payment without fail.

Focus on paying off all your debt as quickly as you can. Don't spend any money for anything unnecessarily. Adapt to a frugal lifestyle for awhile. Cut up your charge cards. Don't go shopping, when you do go, take a list & stick to it.

Best of luck to you. You can do it.

2006-07-16 10:35:15 by bblessed624

I have used and now owe half of my Home Equity Line of Credit which is locked in at 7.25% for five years. I don't want to borrow more money though. I want to start paying off what I owe.

How do I go about doing this in an advantageous manner? Do I need to refinance into a conventional loan or should I just start making payments over and above the interest only payment I am paying now.

Usually minimum payment for a HELOC is interest only. If that is all you pay, you would still owe the whole principal balance at the end. So you have to make an effort to pay extra to work down your balance or you may find yourself having to refinance the balance under less favorable conditions.

So pay as much extra principal as you can to work down that balance.

2009-03-07 16:10:07 by William S