Home Equity to Finance?

[sweetdana]

Open end HELOCs revolve with prime. A 5-10k loan you intend to pay back say a yr + I'd say yeah... Do It. With something that might take more that a yr or 2 to pay off, I would consult with a financial advisor not a public forum. If you have the funds to pay back, but don't want to use them. This is different.


... sure HELOCs currently it is the lowest option..... But they have no security in rates, and hold your home at risk.

( to the pp 0% credit cards usually have transfer/ draw fees exceeding 3% and still fluctuate with prime. Lots of peeps don't know that. But they are still tied to prime.... Prime goes up so does your 0%... And if not paid off in grace period .... rates are through the roof. )

Fyi helocs payments are interest only for 10 yrs most of coarse have no pre payment penalties ... .

I would actually recommend a fixed loan for any part of the $$ you can. pay off in about 1 yr

What ever you cannot 100% pay off in 1 yr .... take longer get a fixed loan for. If that means an 11k HELOC and 7 k personal loan so be it. If you are paying off with tax refund next yr ... Then go with a HELOC.

(Ideally signature/personal but rate will be lower tied to a securable asset car/ house/ boat ect).

The fixed portion payment/ rate will stay constant.

You may have 2 payments for 1 yr, but will give you the best of both adjustable (HELOCs) and fixed loans.

 

[iluvthsgam]

Thanks everyone... I'm wondering if I do the credit card if you can get points or if that's only for actually charging things? We use our cc's for everything but then pay them off each month. Helps us fund our vacations.

No, you won't get points. I have never seen a credit card giving points on a balance transfer.

 

[bisney]

We used our HELOC but everyone's personal financial circumstances are different.

IMO, HELOCs are great for cash flow management and if you are disciplined enough to pay it off. However, HELOCs can be quite risky due to the ease of access to cheap credit and the fact that your home is your collateral.

Before buying DVC, the first thing I did was to look at our cash flow to see if we had the excess capacity to handle making additional loan payments while still maintaining our current standard of living.

 

[nowellsl]

We used our HELOC but everyone's personal financial circumstances are different.

IMO, HELOCs are great for cash flow management and if you are disciplined enough to pay it off. However, HELOCs can be quite risky due to the ease of access to cheap credit and the fact that your home is your collateral.

Yeah, I have a friend who used her HELOC as an emergency fund Bad idea, she ended up having to go back to work because instead of paying off her house before she retired she just added on another 3 or 4 years on her home equity line of credit. Of course I'm pretty sure she has a shopping problem to start with

 

[Moniqu17]

We have a budget so I'm not worried about the monthly payment and we never buy something that we can't afford. Typically we save up and then pay everything off right away. Just decided that we didn't want to dip into the savings for this... and with interest it really isn't that much more pp over a 2 year span. But really appreciate the great info everyone has. It's helped me get a feeling for what I'm looking for so I know all the questions that I need to ask the bank!

 

[Airb330]

No, you won't get points. I have never seen a credit card giving points on a balance transfer.

It's rare, but it does exist. I believe Chase is giving southwest points for balance transfers on southwest credit cards. Of course, there is a balance transfer fee, so it isn't like the points are free.

As a side note, we find the southwest cards to be a good deal. We got 50k to open, the annual fee nets to zero after the anniversary 6k points, and it is a visa signature. Those points help fuel dvc trips!

 

[Dean]

No, you won't get points. I have never seen a credit card giving points on a balance transfer.

I think the question, if I understood correctly, was whether they'd get points on a purchase using the CC, not a balance transfer. Plus normally things like this count as a purchase rather than a cash advance.

 

[Galun]

There is no problem with it if you have discipline. The problem is that most people lack that discipline.

 

[Dean]

There is no problem with it if you have discipline. The problem is that most people lack that discipline.

I'd venture that most that can afford it and have the discipline can save up and pay cash.

 

[jillmc40]

Also if you have a Disney Chase Visa card and do a direct DVC purchase there is 6 months 0% available (up to $10,000)

An if u use your Disney premier card you get twice the points! My guide told me he would do 10000 on the first cycle am 5,000 on the next cycle. Yippee!

 

[lsbgvadvcer]

We used our HELOC for our initial points about a year and a half ago. We've since paid it down substantially and will use it to pay for the add-on that is currently in the ROFR process. Don't see any problem with doing this if you are disciplined and it's what you want to do.