Doolsey Posted September 17, 2003 Report Share Posted September 17, 2003 Now that my credit is good (thanks to all!), I need to get the money out of my house and I don't know which to do.Do I do a cash-out refi or a simple refi and then get a HELOC? I had been planning a cash-out, but I am surprised to see that the interest rates on HELOC's are lower than on first mortgages. So which route is better? Thank y'all! Link to comment Share on other sites More sharing options...
wert Posted September 17, 2003 Report Share Posted September 17, 2003 I just signed my papers this week for my refi and heloc. I personally think it makes more sense. Link to comment Share on other sites More sharing options...
Capepuffin Posted September 17, 2003 Report Share Posted September 17, 2003 Whats a heloc? Link to comment Share on other sites More sharing options...
Doolsey Posted September 17, 2003 Author Report Share Posted September 17, 2003 Home Equity Line of Credit Link to comment Share on other sites More sharing options...
Capepuffin Posted September 17, 2003 Report Share Posted September 17, 2003 Could you educate me as to how that works. I am just about to refinance this week, I am taking out an additional 30k.Thank you... Link to comment Share on other sites More sharing options...
Fade to Black Posted September 17, 2003 Report Share Posted September 17, 2003 A home equity line of credit works like this ...Say you have a house worth $200,000And you have paid down your mortgage to $150,000You now have $50,000 in equityThe lender will loan you money like a credit card...you have credit upto the maximum equity that you can spend. You generally only pay interest on what you spend for the first ten years, After that, the principal and interest are amoritized over 15 years and you pay it off. The big difference here is that interest on an equity loan is deductable up to the first $100,00 of equity. So, in the example, all the interest paid is tax deductable. The problem is a lot of people pay off credit cards and then charge them up again. Plus, you can lose your home if you don't pay because it is tied to your house. Link to comment Share on other sites More sharing options...
Capepuffin Posted September 17, 2003 Report Share Posted September 17, 2003 Thank you!What if I took out a mortgae for 130k and bought my house. Now I owe 127k still on my mortgage but my house is now appraised at 350k. Can you get heloc this way? Link to comment Share on other sites More sharing options...
willtygart Posted September 17, 2003 Report Share Posted September 17, 2003 not enough info here..............with your question you really need to answer a ton of questions.......plans for future, use of money, real estate market in area, how long in job, any stocks/etc, future investment plans, tax bracket, all kinds of stuff that seperates an application taker from a consultant........you pay enough money, find a guy that will consult you and ASK more questions of you and your situation then you ask of him/her....when you find a mortgage guy that asks a bunch of questions...thats yer man and he/she will probably have the correct ansewr to your question. Link to comment Share on other sites More sharing options...
firstsource Posted September 17, 2003 Report Share Posted September 17, 2003 Hi Sis,THe major "danger" of a HELOC is that all of the lenders but one have them only as an adjust. Rate program. So if inflation really kicks in (as the bond market is showing that indication) and prime rate goes up, so does your interest rate and payments. CitiBank is the only one that I know of that has a fixed rate HELOC program. I am sure that there are others, just don't know of them.Charles Link to comment Share on other sites More sharing options...
tampa5 Posted October 7, 2003 Report Share Posted October 7, 2003 COMPASS BANK has 6 months 1.99% INTRODUCTORY OFFER IN TEXAS, IS THIS A GOOD ONE without any closing cost? Are they bk friendly. Any body had any experience with this bank or any other banks applying for heloc?thanks Link to comment Share on other sites More sharing options...
firstsource Posted October 7, 2003 Report Share Posted October 7, 2003 Be careful to make sure that this is not a negative am. product.Charles Link to comment Share on other sites More sharing options...
herauntsis Posted October 18, 2003 Report Share Posted October 18, 2003 Wow, unless they changed the law and nobody told me (happens all the time), you can't get cash out on a 2nd TD in Texas, whether it's a fixed second or a HELOC. Does anybody know if/when they changed that? Link to comment Share on other sites More sharing options...
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