On Jan 21, 6:54*pm, Phisherman wrote:
On Thu, 21 Jan 2010 09:15:32 -0500, wrote:
On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

* *I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. *An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.- Hide quoted text -



"Phisherman" wrote in message
...
On Thu, 21 Jan 2010 09:15:32 -0500, wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...


A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.



Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they


Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.

I got a 2.25% home equity line of credit to pay off my 5.25% mortgage
since it had no fees or closing costs. It was much easier and cheaper
than trying to re-fi with my bank and I now have a line of credit I
can use if I need any unexpected repairs. Granted, my mortgage was
very small, but I'm still surprised how much credit they gave me.

On Jan 22, 2:40*pm, tmclone wrote:
On Jan 21, 6:54*pm, Phisherman wrote:





On Thu, 21 Jan 2010 09:15:32 -0500, wrote:
On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

* *I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. *An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.- Hide quoted text -

"Phisherman" wrote in message

...





On Thu, 21 Jan 2010 09:15:32 -0500, wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. *An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.

I got a 2.25% home equity line of credit to pay off my 5.25% mortgage
since it had no fees or closing costs. It was much easier and cheaper
than trying to re-fi with my bank and I now have a line of credit I
can use if I need any unexpected repairs. Granted, my mortgage was
very small, but I'm still surprised how much credit they gave me.- Hide quoted text -

- Show quoted text -- Hide quoted text -

- Show quoted text -

I bet that 2.25% rate is not fixed like the 5.25% was on the existing
mortgage. The economy is going to recover at some point and when it
does, interest rates will have to rise for 2 reasons. One is the FED
will begin to try to mop up the huge amount of liquidity they have
injected into the system. The other is inflation, as well as
inflationary expectations is sure to rise as well.

If you can pay off the loan at any time or within a couple years if
you have to, then it's not a problem. But if you can't then, I'd say
you made a bargain with the devil.

wrote in message
...
On Jan 22, 2:40 pm, tmclone wrote:
On Jan 21, 6:54 pm, Phisherman wrote:





On Thu, 21 Jan 2010 09:15:32 -0500, wrote:
On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.- Hide quoted
text -

"Phisherman" wrote in message

...





On Thu, 21 Jan 2010 09:15:32 -0500, wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.

I got a 2.25% home equity line of credit to pay off my 5.25% mortgage
since it had no fees or closing costs. It was much easier and cheaper
than trying to re-fi with my bank and I now have a line of credit I
can use if I need any unexpected repairs. Granted, my mortgage was
very small, but I'm still surprised how much credit they gave me.- Hide
quoted text -

- Show quoted text -- Hide quoted text -

- Show quoted text -

I bet that 2.25% rate is not fixed like the 5.25% was on the existing
mortgage.

Sure is. And...the 5.25% mortgage was NOT fixed, it was the same adjustable
I got in 1985 at 11% (good for the time). It went up or down once a year,
with a 1% change cap. It was a perfectly fine mortgage, almost always at a
very competitive rate, but who WOULDN'T grab a 2.25% fixed HELC?

On Jan 23, 4:09*pm, "h" wrote:
wrote in message

...
On Jan 22, 2:40 pm, tmclone wrote:





On Jan 21, 6:54 pm, Phisherman wrote:

On Thu, 21 Jan 2010 09:15:32 -0500, wrote:
On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.- Hide quoted
text -

"Phisherman" wrote in message

.. .

On Thu, 21 Jan 2010 09:15:32 -0500, wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.

I got a 2.25% home equity line of credit to pay off my 5.25% mortgage
since it had no fees or closing costs. It was much easier and cheaper
than trying to re-fi with my bank and I now have a line of credit I
can use if I need any unexpected repairs. Granted, my mortgage was
very small, but I'm still surprised how much credit they gave me.- Hide
quoted text -

- Show quoted text -- Hide quoted text -

- Show quoted text -
I bet that 2.25% rate is not fixed like the 5.25% was on the existing
mortgage.

Sure is. And...the 5.25% mortgage was NOT fixed, it was the same adjustable
I got in 1985 at 11% (good for the time). It went up or down once a year,
with a 1% change cap. It was a perfectly fine mortgage, almost always at a
very competitive rate, but who WOULDN'T grab a 2.25% fixed HELC?- Hide quoted text -

- Show quoted text -

What is the term of that 2.25% fixed equity line of credit? That
rate is extraordinary. Even conventional fixed rate conforming loans
were over 2X that. Also, fixed rate on a line of credit that you can
draw on anytime is unusual too, because you might not use it now, when
the cost of money to the bank is near zero, but later on when their
cost is higher than what you are paying. They could of course cancel
your ability to draw on it, but these HELC lines are almost always set
up with variable rates to protect the lender and make sure they always
have a margin. Also, if you don't mind, who is the lender?

What is the term of that 2.25% fixed equity line of credit? That
rate is extraordinary. Even conventional fixed rate conforming loans
were over 2X that. Also, fixed rate on a line of credit that you can
draw on anytime is unusual too, because you might not use it now, when
the cost of money to the bank is near zero, but later on when their
cost is higher than what you are paying. They could of course cancel
your ability to draw on it, but these HELC lines are almost always set
up with variable rates to protect the lender and make sure they always
have a margin. Also, if you don't mind, who is the lender?

I got it in '07 for 25 years when it was tied to prime-x (can't remember the
x), with the rate determined daily (started at 5-something). I didn't draw
on it at all - just saved it as an emergency-interest-deductible-thing. When
it dropped down to 1.75% (right after the crash) they offered me the option
to shorten the line to 10 years, fixed, at 2.25%, with the half the amount
of available credit. They only offered this option to those of us who also
had at least 2 accounts with them (I think one had to be business?), and a
credit score of at least 800 (or so I was told). So...I used it to pay off
my mortgage (the smaller line was still more than twice what I owed on the
mortgage). I'm still paying the same $ amount to them that I paid on the
mortgage since I only had 5 years left. It's a rinky-dinky bank in upstate
NY with 3 branches.