Home equity loan/line of credit

[Richard Simmons]

Thinking about looking into a home equity loan or line of credit for some repairs around the house, heat pump, attic insulation, driveway repair, etc. Not looking to use it for a car purchase or paying of another bill or anything like that. Strictly home improvements. Don't know that much about them but as I understand it you can deduct some portion of the interest and there shouldn't be all the fees like refinancing a mortgage just to pull some equity.

One of my coworkers has the equity line and he just writes a check when he needs to instead of tapping savings. He's had it for years and has used it for a new roof, driveway, furnace, etc. Seems like something I should look at instead of depleting my emergency fund or savings account. Opinions?

[nitewatcherXX]

And take advantage of the low rates too. Ive had one on our ranch for years 4.24% It was no fees if kept open for 5 years. I pull a little out every so often to keep it active. You dont use it some banks will call it in.

[Warthogg]

Thinking about looking into a home equity loan or line of credit for some repairs around the house, heat pump, attic insulation, driveway repair, etc. Not looking to use it for a car purchase or paying of another bill or anything like that. Strictly home improvements. Don't know that much about them but as I understand it you can deduct some portion of the interest and there shouldn't be all the fees like refinancing a mortgage just to pull some equity.

One of my coworkers has the equity line and he just writes a check when he needs to instead of tapping savings. He's had it for years and has used it for a new roof, driveway, furnace, etc. Seems like something I should look at instead of depleting my emergency fund or savings account. Opinions?



http://www.bankrate.com/brm/news/loan/19990203.asp


Have a look at the link. BUT remember, Barry is after every dollar. What's true today may not be true tomorrow.


Wart

[1 Patriot-of-many]

Dave Ramnsey thinks that is a stupid idea.

[Richard Simmons]

Dave Ramnsey thinks that is a stupid idea.

What's his alternative?

[l921428x]

we had one for years. 10 k paid 50 dollars a yr for the loan kept it only for emergencies, had a 5.0 intrest. For us it was a fallback and actually we never really had to use it. but the comfort it brings is great.

[Schuetzenman]

He says to Pay Cash.

http://www.hulu.com/watch/1389

This.

[Cypher]

IMO it can be a bit risky using a HELOC because it's still debt but it's tied more directly to your home security if you cna't make the payments.

It may seem hard to pay cash but in reality you are still making payments to pay it off plus interest after you take out the HELOC so even if you used some emergency fund money just make the payments you would have made to the bank and deposit it directly to savings instead. Or look at side work or part time jobs to fill the gap and pay off the repairs.