Questions tagged [heloc]

a type of home equity loan where the borrower is given a line of credit. They do not have to start out borrowing the full amount.

Filter by
Sorted by
Tagged with
6 votes
1 answer
2k views

How to remove a co-signer from HELOC?

I have a Home Equity Line of Credit (HELOC) in Canada, Quebec. I have a co-signer on it. The co-signer is not on the deed of sale or the mortgage. I would like to release the co-signer, so he does not ...
user avatar
  • 169
1 vote
1 answer
61 views

HELOC for annual renovations

We’ve got some equity in our home and I’m wondering about how to handle our renovation plans. As I understand it, I can borrow against my equity with a HELOC, use this money for the projects and pay ...
user avatar
  • 453
1 vote
1 answer
165 views

Pay seller from escrow before closing on property so mortgage can be finished?

Let's say seller does not want to grant extension to buyer so his lender could finish mortgage paper work. However, buyer has enough cash on hand and is completely capable to pay seller by original ...
user avatar
1 vote
1 answer
64 views

Better loan option: PMI or Higher+variable interest?

I'm looking at two options for a home improvement loan (around $20,000): the first is a federal title 1 loan, which would be a fixed interest rate of around 4.5% (at the time of initial quote), BUT ...
user avatar
  • 113
1 vote
1 answer
61 views

Is there a downside to doing a cash out refinance followed immediately by a rate and term refinance?

I want to do a cash out refinance on my primary residence to pay off a HELOC, and to put more money into an investment property. Cash out refinances have higher rates than rate and term refinances. Is ...
user avatar
  • 267
1 vote
1 answer
134 views

Why would anyone use Heloc to pay down a house?

So I been thinking about buying my first home. I saw youtube and other resources saying that heloc is better and faster to pay down your mortgage. However, heloc just doesn't make sense to me. It has ...
user avatar
  • 457
5 votes
1 answer
312 views

What's "bank jail" for US banks?

I phoned my Wells Fargo Branch Manager today about HELOC, and he said Wells Fargo is in "bank jail". He said they're prohibited from growing total assets except Paycheck Protection Program. They'll ...
user avatar
1 vote
0 answers
161 views

Single late mortgage payment is hurting me a lot

I'm from the US and I've recently applied for HELOC refinancing at a much lower rate (-2.00%), but underwriter has decided to deny the application due to a single late mortgage payment made in Jan ...
user avatar
  • 111
1 vote
0 answers
109 views

Now that I'm 59 1/2, should I pay off my HELOC by withdrawing from my IRA?

Maybe someone here can help me figure this out. I turned 59 1/2, and I have an IRA with about $500K. My wife has recently semi-retired and has started taking her social security, but I am still ...
user avatar
  • 111
2 votes
0 answers
485 views

Escrow sent money to wrong account

I signed up for a HELOC, but the terms for me being approved for the HELOC required me to use the full balance to pay down part of my mortgage. The bank worked with an escrow company to ensure that ...
user avatar
  • 131
6 votes
4 answers
387 views

Products for withdrawing from a home's equity?

I am a current homeowner with a property that has no mortgage (everything has been paid off). A family member is in need of some cash to consolidate some credit card debt and I would like to help them ...
user avatar
  • 395
21 votes
4 answers
10k views

HELOC debt is 2x my mortgage, help [duplicate]

My home equity line of credit (HELOC) amount owed has now grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt. ...
user avatar
3 votes
1 answer
143 views

HELOC Payment Haziness

I have been searching, reading, and watching youtube trying to understand HELOC. Everyone explains simple vs compound interest, daily average balance, and that money can go in and out at any time. ...
user avatar
112 votes
13 answers
28k views

Should I take out a loan to pay off a relative's credit card debt?

Recently a close relative revealed to me that she has run up $40,000 in credit card debt over the last few years, which she can no longer manage because the interest payments are eating up all of her ...
user avatar
  • 1,045
0 votes
2 answers
105 views

Out of state property for a secured home loan

How can I use a house fully paid in New Orleans as collateral to purchase a house in Washington state? Do I need to have the New Orleans house appraised? In 2010 my dad died leaving me the house he ...
user avatar
  • 1
1 vote
2 answers
859 views

Using HELOC for vehicle purchase: can this be done wisely?

I have a chevy suburban lined up to purchase for 10k. By my research, it has a market value of 13k. My goal is to keep monthly payments as low as possible while also being financially responsible. My ...
user avatar
9 votes
5 answers
2k views

HELOC vs Federal Student Loan

Given the following assumptions: Interest rates are the same for HELOCs as Federal Student Loans (they're both hovering around 5% right now). Loan amount could range anywhere between $10,000 and $40,...
user avatar
4 votes
1 answer
226 views

Refinance for renovation, use 401k? HELOC? Both?

We've decided to remodel our kitchen. For the sake of round numbers, assume I have about 20K in the emergency fund/savings right now. 20K in a stock portfolio, and a MUCH larger amount in the ...
user avatar
  • 141
1 vote
0 answers
1k views

Should I pay off my HELOC or continue to save/invest? [duplicate]

I currently have a $560k mortgage and took out an additional $105k HELOC piggy back loan to make up the 20% needed for the Jumbo loan last year. I've been saving for the past year and a half and now ...
user avatar
1 vote
1 answer
52 views

Can I get a loan on my home by mortgage I am a pensioner and son is in states

I am looking at a loan of Rs 15 lakhs on my home. I own a property in Kalyan. I am a pensioner. My son will repay he is in United States
user avatar
  • 11
1 vote
0 answers
105 views

Should I refinance my 15 year mortgage to include my HELOC balance?

I have a HELOC with my local bank. The draw period is 10 years and the term is 15 years. I still have balance that equals 95% of the line of credit. I only have about 3 years left on the draw period ...
user avatar
6 votes
1 answer
1k views

Why do banks require justification for a HELOC?

When you apply for a HELOC, the underwriters will ask how you intend to use the funds. However, the draw period for a HELOC typically lasts 10 years. It is foreseeable that someone takes out HELOC to ...
user avatar
  • 403
6 votes
4 answers
329 views

HELOC vs. Parental Student Loans vs. Second Mortgage?

First to set the stage. We have two kids one starting school this fall and another following in two years. As a family our income is high enough that we do not qualify for any aid. We also make ...
user avatar
  • 233
11 votes
4 answers
3k views

Does home equity grow with the investment put into the house?

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the ...
user avatar
  • 1,189
2 votes
1 answer
252 views

Is there such a thing as a BELOC (Business Equity Line of Credit), like a HELOC?

A colleague of mine has some rental properties, both with mortgages a home with a HELOC and an office building that is used as a chiropractic office. The top floor of that building is residential and ...
user avatar
  • 123
1 vote
1 answer
150 views

Can my mom cosign on my student loan if she already has a HELOC?

My mother currently has a Home Equity Line of Credit with her bank for about 40k (I'm not sure of the exact figure but it is around there). For the school I am planning on attending, I will need to ...
user avatar
-1 votes
1 answer
61 views

Should I provide documents at the time of application for a HELOC?

I'm in the market for a home equity line of credit (HELOC). In the past for lines of credit, loans, or mortgages, I'm used to applying with several lenders within the same few weeks and having them ...
user avatar
  • 141
2 votes
1 answer
107 views

Can a bank make you convert your HELOC into a loan? [closed]

Can a bank make you convert your Home equity line of credit (HELOC) to a loan?
user avatar
4 votes
2 answers
259 views

Upside down on Property with Mortgage and HELOC, now on Disability Income...

Excuse any Newby mistakes, this is my first post: I just got my SSI Disability and also owe more on my house than current market value due to 2 mortages. If I got rid of my HELOC, then my primary ...
user avatar
6 votes
1 answer
1k views

What happens to a HELOC after a death?

My situation is as follows: up until a few months ago, my father, mother and I lived in a house (in Canada) which was solely in my mother's name. There is a home equity line of credit associated with ...
user avatar
1 vote
2 answers
145 views

How does one compare repayment of a loan based on a fixed payment of some dollar per $1000 borrowed?

I'm having some difficulty understanding the payment fees of a possible home equity line of credit (HELOC). The HELOC is for $270k, with a stated repayment period of 15 years at 2.75% APR. The credit ...
user avatar
4 votes
1 answer
160 views

Taking out money on current home for down payment of new home

My real estate broker is advising me to borrow money against my current house for the down payment on a second house . I need to borrow about 50k. My current house has a principal balance of 80k and ...
user avatar
  • 15.7k
5 votes
1 answer
5k views

How does cosigning for a home equity line of credit affect your chances of getting your own loan?

My father has a home equity line of credit (HELOC) but it is coming to an end and in order to renew it he would need me to cosign with him for it. I trust my father to make the payments and to not ...
user avatar
  • 181
1 vote
1 answer
579 views

Take out a loan vs. sell bond investments

I am going to put solar panels on my roof. I can pay for those panels using some combination of the following Take out a HELOC at 3.75% variable interest rate with closing costs covered by the bank. ...
user avatar
  • 4,623
1 vote
1 answer
133 views

Home Equity Line of credit features and overview

I have a very recent mortgage. I only have about 7% of equity on the home. I've made about 5 payments so far and everything is going smoothly. Now I have a family emergency requiring me to borrow ...
user avatar
1 vote
0 answers
264 views

Buying a home-Make as large a downpayment as possible, or keep cash to invest

I'm trying to decide whether to put a full 20% down on a new home (primary residence), which would eat up most of my cash from sale of current home, or do something like 10% down, 80% conventional (...
user avatar
  • 111
2 votes
1 answer
1k 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 ...
user avatar
5 votes
1 answer
145 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 ...
user avatar
7 votes
3 answers
476 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 ...
user avatar
5 votes
4 answers
3k 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. ...
user avatar
  • 595
4 votes
2 answers
216 views

Fixed-rate mortgage vs HELOC

Why is it that a home equity loan or a home equity line of credit comes with a higher interest rate than a 15-year or 30-year fixed-rate mortgage?
user avatar
1 vote
1 answer
416 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 ...
user avatar
2 votes
1 answer
3k 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 ...
user avatar
  • 21
5 votes
2 answers
4k 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 ...
user avatar
  • 5,413
5 votes
5 answers
2k views

Should we pay down our HELOC or pay extra towards our mortgage?

We have a mortgage at $207K at 5%, a HELOC balance of $7500 at 3.25% and a credit card balance of $3300 at 13.9% APR. In savings we have $116K and in a mutual fund we have $21K My plan was to take ...
user avatar
  • 377
3 votes
1 answer
343 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 ...
user avatar
  • 15.7k
10 votes
5 answers
15k 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 ...
user avatar
  • 869
1 vote
1 answer
384 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 ...
user avatar
  • 1,400
7 votes
2 answers
177 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 ...
user avatar
  • 8,653
5 votes
3 answers
2k 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 ...
user avatar
  • 8,653