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1answer
75 views

Should I pay extra towards my mortgage or HELOC?

My first mortgage has a balance of $147k with 4.75% fixed interest rate. My home equity line of credit (HELOC) has a balance of $87k with prime minus 1.1%. I've been making about $50 extra payment ...
5
votes
1answer
103 views

How close to prime rate for a loan?

I just received an ad from my bank offering me a home equity line of credit at prime + 0.5%, a variable-rate loan. Now, I don't need the loan. But I'm curious. Is prime + 0.5% the best I can do? My ...
5
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2answers
92 views

HELOC with no first mortgage (for liquidity--no plans to spend it)

For a home-owner with no debts, a good salary, credit score, etc.: What terms would be optimal for future liquidity when obtaining a home equity line of credit (HELOC)? The point is to obtain ...
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4answers
1k views

Using a HELOC as downpayment

My wife and I bought a fourplex in Los Angeles a year ago. It has been a good experience, and we would like to buy a second investment property, but we don't have enough cash for a decent downpayment. ...
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1answer
197 views

Pros and cons of cashing out my RRSP in order to repay HELOC used to start a business, now failed?

I'm in my mid 40s and a few years ago I used my HELOC to start a new business. I was paying interest only on the loan in hopes of paying off the HELOC in lump sum amounts once the business was ...
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1answer
1k views

Does it make sense to refinance and convert the HELOC back to a fixed 20 year low rate mortgage?

I have $5k left on a primary mortgage at 5.375% interest. I have $155K debt on a HELOC at a variable 3% rate. The total line of credit approved is 200K. 3.0% APR. No penalty for pre-pay. Can lock ...
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2answers
2k views

Should I pay off investment property mortgage

Just a little financial puzzle. Inputs: An investment mortgage with 5.5% interest rate, 100K balance and 20 years left. Saving account with 100K in the saving account at 0.5% HELOC without any ...
3
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1answer
223 views

What is the difference between a home equity line of credit and a mortgage?

In the article About.com - Six Ways To Prepare Now For Rising Interest Rates it states: The average US household debt, according to the Fed, is $20,000, not including mortgages. Most of that ...
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4answers
2k views

Should I pay off HELOC or save?

I've heard the principle of "Pay yourself first", implying that saving some money each month should be a priority. However, I've also heard that being debt free is important, and it would be good not ...
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1answer
314 views

Home office deduction with a line of credit mortgage (e.g. Manulife One)? [Canada]

I've been looking at mortgage products such as Manulife One - which work like a line of credit based on the equity in your home. The monthly payment is the interest on the amount left owing every ...
5
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1answer
74 views

Can a Line of Credit be re-financed? Is it like a mortgage, with a term?

I have a home equity line of credit, for which I have had trouble making large payments against since my career change. I'm wondering if I should be concerned over the interest charges, and if there ...
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3answers
1k views

Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?

The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt). I know if I ...
5
votes
4answers
187 views