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Any HELOC tips?

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    Any HELOC tips?

    Last fall, we took out a Parent PLUS loan for college. I realized later that it really wasn't a great idea. It would have been far better to do a HELOC, so my plan for the coming school year is to do just that. I want to open a HELOC, draw out what we need to pay off the PLUS loan (about $7,500 at the moment) as well as what we need for the fall semester (also around that same amount - $7, 500). We'll avoid the 4+% origination fee and the interest rate will be a couple of points lower and tax deductible.

    I searched at Bankrate.com to find a place with no required draw and a good rate. Anything else I need to be watching out for?
    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
    Originally posted by disneysteve View Post
    the interest rate will be a couple of points lower and tax deductible.

    Anything else I need to be watching out for?
    I've lost track of the tax reform initiative, but I think that would be one thing to look out for. would the interest really be deductible if the Standard Deduction is raised?

    Comment


      #3
      Originally posted by Jluke View Post
      would the interest really be deductible if the Standard Deduction is raised?
      I have no idea. I was basing that comment on current tax law. But ultimately, I don't care if it is or isn't. Just getting a rate that is 2-3% lower than the PLUS would be sufficient savings. If it turns out to be deductible, even better.
      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
        I just applied for the HELOC. Current rate is 3.99% though I realize that will likely go up soon as the Fed raises rates. It should close in plenty of time to draw on it for fall tuition in August.
        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


          #5
          I have one through a smaller regional bank.

          I had to have an appraisal done, but that was it. HELOC's are one of the easier credit tools to open. They are pretty straight forward.
          Brian

          Comment


            #6
            Originally posted by bjl584 View Post
            HELOC's are one of the easier credit tools to open. They are pretty straight forward.
            I'm hoping the process is quick and easy. The application was simple enough. We don't have a complicated situation, our only debt is a small mortgage and a very small student loan, we have lots of equity, and we have a ton of assets relative to the amount we're looking to borrow. Plus we both have credit scores between 830 and 850. I don't think we should have any trouble getting approved.
            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


              #7
              Did you have to pay a closing cost? The HELCO I've taken out with Suntrust didn't have a closing cost as long as it's open for at least 3 years.

              Comment


                #8
                Originally posted by Singuy View Post
                Did you have to pay a closing cost? The HELCO I've taken out with Suntrust didn't have a closing cost as long as it's open for at least 3 years.
                Nope. No fees at all to open the line. There is a $65 annual account fee but it is waived the first 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


                  #9
                  Originally posted by disneysteve View Post
                  I just applied for the HELOC. Current rate is 3.99% though I realize that will likely go up soon as the Fed raises rates. It should close in plenty of time to draw on it for fall tuition in August.
                  I envy you!
                  A very small percentage.
                  In my country the current rate is 15%

                  Comment


                    #10
                    15%!? Which country is this?

                    Comment


                      #11
                      Originally posted by Singuy View Post
                      15%!? Which country is this?

                      The Republic of Belarus is bordered by Russia, Ukraine, Poland, Lithuania and Latvia.

                      May be less or above this percentage
                      Last edited by evgeniusleo; 06-26-2017, 12:06 AM.

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