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  • Annual fee on HELOC

    I probably knew this when we opened the HELOC but I got a statement today for the $65 annual account fee. Does your HELOC have a fee? How much is it?

    I don't have any plans to use the HELOC again as it was opened for a specific purpose but is it worth $65/year to maintain it just in case the need arises?
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

  • #2
    Since you are paying your house off in a few months you may want to keep it open.

    Though with no real purpose it might not be worth it to you.

    Others have commented that prior to paying off a mortgage consider opening a HELOC, just in case. Whether it is because they depleted their emergency fund to pay it off OR for some other reason. I canít remember the full details.

    Maybe it is easier to apply for one with an active mortgage payment versus a paid off house.

    Comment


    • #3
      Originally posted by Jluke View Post
      Since you are paying your house off in a few months you may want to keep it open.

      Though with no real purpose it might not be worth it to you.
      The fee is nominal. It's not like $65/year is going to be even a blip in our spending. It's easy to say right now that we won't ever use the line again, but I would have said the same thing 3 months before we opened it. The expense that popped up was entirely unexpected.

      I guess I'll pay it for this year and reevaluate things next year.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


      • #4
        Is there a way to avoid the fee?also, did you try calling to see if they would waive it? Never hurts to ask.

        Comment


        • #5
          I currently have a heloc through a credit Union. But I shopped around to find a no fee one. (Also no minimum draw).

          I actually sold some sicks and paid off the house too. It is good to know I have the heloc ready incase you need large sum for a purchase, ideally to leverage. (I may use to finance another rental property)

          Comment


          • #6
            Originally posted by disneysteve View Post

            The fee is nominal. It's not like $65/year is going to be even a blip in our spending. It's easy to say right now that we won't ever use the line again, but I would have said the same thing 3 months before we opened it. The expense that popped up was entirely unexpected.

            I guess I'll pay it for this year and reevaluate things next year.
            Who are you and what have you done with DisneySteve? $65.00 would easily pay for lunch for 2 at Be Our Guest restaurant!
            You have a perfect credit score--you should have no trouble getting another HELOC. Or, a zero interest credit card to fund a short term cash flow. Or, temporarily tap into your emergency fund. (Or, probably a 101 different ways to cover something unexpected. )

            Comment


            • #7
              Originally posted by Like2Plan View Post

              Who are you and what have you done with DisneySteve? $65.00 would easily pay for lunch for 2 at Be Our Guest restaurant!
              You have a perfect credit score--you should have no trouble getting another HELOC. Or, a zero interest credit card to fund a short term cash flow. Or, temporarily tap into your emergency fund. (Or, probably a 101 different ways to cover something unexpected. )
              It's true that we could get another HELOC but it's not like that is a quick or easy process. Getting a new credit card could take some time, too. Hitting the EF is easier, of course. And since we got rid of college costs and paid off the HELOC, I've been focusing on beefing up the EF, so there's that.

              I don't know. It just seems like a small price to pay for the peace of mind of knowing it's there.

              And we've never done lunch at Be Our Guest anyway. We went for dinner once and while I'm glad we did, I don't think we would ever go back.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


              • #8
                Originally posted by disneysteve View Post

                It's true that we could get another HELOC but it's not like that is a quick or easy process. Getting a new credit card could take some time, too. Hitting the EF is easier, of course. And since we got rid of college costs and paid off the HELOC, I've been focusing on beefing up the EF, so there's that.

                I don't know. It just seems like a small price to pay for the peace of mind of knowing it's there.

                And we've never done lunch at Be Our Guest anyway. We went for dinner once and while I'm glad we did, I don't think we would ever go back.
                ...Or, a bunch of churros and Mickey bars--there must be a 101 treats at WDW that you enjoy. I mentioned BOG for lunch because I was pleasantly surprised to find I could get a lunch ressie at less than 30 days out.
                (Personally, I like the lunch menu at BOG compared to other counter service places. )
                Well, anyway I think the HELOC folks need you more than you need them. If you are truly ambivalent about it--do as Moosebucks suggests and see if they will waive the fee. (Keep it open another year if they waive it. )

                Comment


                • #9
                  Originally posted by disneysteve View Post


                  And we've never done lunch at Be Our Guest anyway. We went for dinner once and while I'm glad we did, I don't think we would ever go back.
                  Not to sidetrack this thread , but I enjoyed lunch at BOG. I went back for dinner and left without eating. I just didn't like the dinner menu.

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                  • #10
                    Originally posted by moneybags View Post

                    Not to sidetrack this thread , but I enjoyed lunch at BOG. I went back for dinner and left without eating. I just didn't like the dinner menu.
                    I'm always happy to go off topic to talk about Disney .

                    I think everyone should eat at BOG at least once just to be able to see the inside of the place. It doesn't matter if you do breakfast, lunch, or dinner. It's just a great space that is well worth seeing.

                    As for dinner, they did recently switch to a prix fixe dinner and tweaked the menu a bit. I'm not sure how much that changed things. We enjoyed our dinner there but I don't think it was worth the price. Honestly, I feel that way about most table service restaurants at Disney, which is why we hardly ever eat at any of them when we're there.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                    • #11
                      I don't have HELOC, have never had a HELOC, and would not be willing to pay a fee to keep one. I'm sure you're shocked to hear that.

                      Having said that, I do understand paying a little extra for something if the peace of mind that it brings you is worth the cost to you. My annual AAA membership is something that falls in to this category.

                      Comment


                      • #12
                        Mine had a few fees when I initially set it up, but there are no recurring annual fees of any kind.
                        Brian

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                        • #13
                          Originally posted by scfr View Post
                          I do understand paying a little extra for something if the peace of mind that it brings you is worth the cost to you. My annual AAA membership is something that falls in to this category.
                          Yep. I figure for about $5/ month (when we run a monthly budget surplus of about $4,000) it wonít kill us to keep it open for a year and decide about it then.

                          As for AAA, Iím a big supporter. I would never be without that. I donít think a year has ever gone by where we didnít use their services at least a couple of times whether for road assistance or travel related stuff.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                          • #14
                            My HELOC does not have an annual fee. However, I have seen plenty which do so yours is not unusual.

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