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.
53
questions
4
votes
1
answer
396
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 ...
- 2,312
0
votes
2
answers
165
views
Is paying back a HELOC similar to paying a credit card?
Background: Due to some not-so-good financial/home decisions by my spouse, I now must pay off our HELOC to the bank. We own the house but the bank owns us b/c the HELOC was only paid and never paid ...
- 53k
0
votes
2
answers
232
views
Investing in stocks and bonds to save for a home renovation
We have a goal of one day doing a large home renovation. This work is not urgent, but it would definitely be nice to do someday. I would prefer to take on as little debt as possible to do this, so I'm ...
- 136k
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 ...
1
vote
1
answer
70
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 ...
- 42k
1
vote
1
answer
178
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 ...
- 136k
1
vote
1
answer
82
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 ...
- 31.7k
1
vote
1
answer
67
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 ...
- 136k
2
votes
1
answer
151
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 ...
- 1,406
5
votes
1
answer
323
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 ...
CommunityBot
- 1
1
vote
0
answers
165
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 ...
- 111
1
vote
0
answers
182
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 ...
- 31.7k
6
votes
4
answers
406
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 ...
- 1,523
2
votes
0
answers
597
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 ...
- 131
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. ...
- 8,287
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 ...
- 1
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,...
CommunityBot
- 1
3
votes
1
answer
153
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. ...
- 57k
113
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 ...
0
votes
2
answers
158
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 ...
- 1,317
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 ...
- 21k
1
vote
2
answers
892
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 ...
- 5,083
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 ...
CommunityBot
- 1
4
votes
1
answer
247
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 ...
- 131k
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 ...
- 403
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 ...
- 131k
10
votes
5
answers
16k
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 ...
- 9,800
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
- 57k
1
vote
0
answers
108
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 ...
- 32.7k
6
votes
4
answers
335
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 ...
- 263
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 ...
- 4,599
2
votes
1
answer
339
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 ...
- 42k
1
vote
1
answer
159
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 ...
- 43k
-1
votes
1
answer
68
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 ...
- 43k
4
votes
2
answers
224
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?
- 57k
2
votes
1
answer
110
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?
- 57k
4
votes
2
answers
266
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 ...
- 76.1k
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 ...
- 166k
1
vote
2
answers
148
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 ...
- 131
7
votes
3
answers
486
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 ...
- 32.7k
4
votes
1
answer
167
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 ...
1
vote
1
answer
607
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.
...
- 31.7k
1
vote
1
answer
136
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 ...
- 166k
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 (...
- 111
7
votes
2
answers
181
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 ...
- 615
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 ...
CommunityBot
- 1
5
votes
1
answer
151
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 ...
CommunityBot
- 1
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.
...
1
vote
1
answer
424
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 ...
CommunityBot
- 1
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 ...
- 595