Home
Forums
New Posts
Illini Basketball
Illini Football
Sports Talk
Log in
Register
What's new
Menu
Log in
Register
Install the app
Install
Forums
General
Chat
Finances
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Illwinsagain" data-source="post: 1324929" data-attributes="member: 17817"><p>Sorry that I missed this thread. 25 year mortgage veteran here. Having a 10 year fixed, you pay very little interest. If you are comfortable with this payment, then you should stop right there. Home Equity Lines of Credit have variable interest rates. </p><p></p><p>Now, if you have and use an emergency fund to pay down your heloc, after you open it, then your balance will drop significantly, and if you continue to make your normal payment, it will go away faster, since you have less principle. The bad thing about this strategy, what happens if 2008 occurs again and your line of credit gets frozen and you are in a position that you need that emergency fund? It is a small risk. </p><p></p><p>Opening a free heloc, is not a bad idea, just not to pay off your mortgage. Most helocs have a 2 year pre-payment penalty, but only if you close the account. You can keep it at a $0 balance, and leave it open. They usually do have an annual fee of $50 or so, usually waived for the first year.</p></blockquote><p></p>
[QUOTE="Illwinsagain, post: 1324929, member: 17817"] Sorry that I missed this thread. 25 year mortgage veteran here. Having a 10 year fixed, you pay very little interest. If you are comfortable with this payment, then you should stop right there. Home Equity Lines of Credit have variable interest rates. Now, if you have and use an emergency fund to pay down your heloc, after you open it, then your balance will drop significantly, and if you continue to make your normal payment, it will go away faster, since you have less principle. The bad thing about this strategy, what happens if 2008 occurs again and your line of credit gets frozen and you are in a position that you need that emergency fund? It is a small risk. Opening a free heloc, is not a bad idea, just not to pay off your mortgage. Most helocs have a 2 year pre-payment penalty, but only if you close the account. You can keep it at a $0 balance, and leave it open. They usually do have an annual fee of $50 or so, usually waived for the first year. [/QUOTE]
Verification
Post reply
Forums
General
Chat
Finances
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…