Hi: I have been thinking about this for some time. I bought my second home about 11 years ago. At that time I paid $160,00.000 Right now, it is worth between $625,000.00 to $650,000.00 Obviously, I have a good amount of equity. Anyway, I have been saving up for a new roof (almost there). However, I am thinking of extending the living room and replacing the plumbing with cooper pipes. Long story short, I would be looking at needing around $35,000.000 for these improvements. Most people having been telling me a line of credit would be best. Has anyone done this before?, any suggestions? I would really appreciate it. If I were to do this, I would probably go through my credit union because they usually have the best deals. Please advise. Thanks, Abner
Usually the HELOC is the best way to go. They usually run about 0.25% below prime which is now at 6%. I found both of my credit unions had crummy rates and ended up with Bank One (now Capital). I just refied myself to build a new kitchen and put in central air. Home appreciation is going very well especially in the BA. I bought my house for a bit over $300K in '99 and it appraised for over $700K this year.
I will check it out! Ok, thanks, I will look into it. What does HELOC stand for? Just curious. Thanks, Have a great Fourth of July!!! Abner
HELOC = Home equity line of credit. Sort of like a credit card tied to your home equity. You only pay interest on what you spend.
Thanks! Thanks, I will check into this. My tax man also suggested this because you are only paying interest on what you spend. Thanks once again, Abner
One more question Hi Mr. Engineer: Just have one more question. Is your HELOC payment integrated/lumped in with your mortgage payment? Or is it a whole separate billing statement? Please advise. I have a tip for you if your are interested. If you are buying a car you can go to your local credit union and ask for a "Auto Loan Equity Advantage". What they do is charge you $100.00 to file paperwork with the county assessor (Deed of Trust). This not only enables you to obtain a very low interest rate on a new or used car 3.75%, but since it is considered to be like a home equity loan (it's not really), you can also get a tax break at the end of the year. ***This is more of a word of mouth deal**** I took advantage of this loan. I purchased a 1 year old Mercedes fully covered under factory warranty for much less than I would have paid for a Honda or Toyota. Take care, Gotta go fire up the QUE!!!! Ribs here I come! Abner Best wishes to you and your family on this Fourth of July! P.S. How did your Kitchen turn out?
