Home Equity Credit Puns

Just wondering if anyone can share their experience using this loan tool? My understanding is that if you've completely (or mostly) paid off your mortgage you can withdraw cash against that at a low rate and use the funds for other things (eg other investments). I just don't want so much money tied up in the house not earning me $$$ passively.

Good evening. I’m in a bit of a pickle. I purchased a home in July 2021 and my lender is canwise. I put in 125k cash down on a 301k value-property. I kept some money aside to do some Renos and put a cash down on a second investment property that is in pre-construction. Financing was approved for that condo, I paid the 5% deposit in September and I owe another 5% next week. The issue is I have lent money to my brother who is now unable to refund me in time and I’m about 10k short (the deposit is almost 18k). I’m trying to find a way to get that money by November 22nd -don’t want to lose the property. Is there any way I can access equity on my current house? My lender Canwise told me they don’t offer HELOC. Is there another bank I can turn to? Can I withdraw My RRSP without paying taxes or penalty? Is using a line of credit a bad idea? At this point it is my last resort. Thank you

Good morning!

We are beginning the process of some renovations in a rather old house. The house is fully paid off, so we don't currently have a mortgage to worry about.

Our budget for renovations is $300k. We applied for a HELOC and got approved with a variable rate of prime -. 75%. 10 year interest only draw period, then 15 years interest/principle payments.

Our worry is the variable rate. Rates are super low right now, but I keep hearing that they are going to increase, and the thought of not knowing what the payments could be in 10 years stresses me out.

The alternative wound be securing a 15-year home equity loan for the full amount now, with a slightly higher but fixed interest rate (3.75%). I guess that means we'd be paying full payments almost immediately, when the actual work probably won't be completed for at least another year.

So what makes more sense?

So I’ve got a little over $50,000 in equity in my home and about 30k in credit card debt. Most of that debt charged off during Covid due to not being able to keep up on payments, so credit is absolute shit. Income has stabilized a bit now but not to the point that I would ever be able to catch up on them. I’ve never missed or been late with a mortgage payment if that counts for anything. I see such an easy solution in front of me to be able to get my equity out, pay off debts, and watch my credit score recover but obviously no one will give me the equity due to credit. Feels like a double edged sword, any suggestions moving forward. No need to discuss or bring up the mistakes that have gotten me to this point!

I'm looking to buy a new home and sell my current home. I do not have cash for a down payment and I'm wondering if I can use an HELOC on my current home for down payment on a new one. I believe this HELOC needs to be paid off in full BEFORE I sell my existing home, but I would need the money from my current home sale to pay off that line of credit. If that's the case how do people use a line of credit for down payment on moving to a new home?

I'm sure I missing something here so any help would be greatly appreciated.

I am buying a $85,000 house (more like $89,000 after closing costs and purchasing home insurance). Closing on it tomorrow and going to pay cash (had the money, and house was listed at $92,400 so wanted to make my offer look good). I have a 700 credit score. Will have $13,306 in subsidized student loans that will start accruing interest at the end of this school year and are all at around 3-4%. After buying the house, I’ll have around $15,000 leftover. I don’t owe any other money, no credit card debt, no car payment, etc.

I’m thinking of getting a 15 year mortgage in particular if I can just to have more financial flexibility. My local bank (assuming I can get approved) has an APR of 2.661% on a 15 year mortgage. Figure I’ll have 20% down giving me $68,000 from the mortgage and a monthly payment of $458.59.

From what I understand, in this situation all the interest on the mortgage will be tax deductible.

Home equity loans or home equity lines of credit seem like decent options as well, but you can’t tax deduct the interest on those right?

I’m thinking basically:

If I get a 15 year mortgage I can use it to invest and potentially pay off some of the student loans (if I have to). It seems like if I take $68,000 and put it in mutual funds it should be pretty easy to get a 3% average return if not quite a bit more. Even if I pay off the student loans this way (might not have to depending how much I make this year), I’d still $54,694 to invest and a return of about 6% would break me even there. That is assuming I take the $458.59 mortgage payment out every month.

Bonus: I’d have the ability to access quite a bit of funds if necessary.

Is this really a correct outlook here? It seems with the current mortgage rates to be a good idea to get one even though I don’t necessarily need it.

In our area every house sells in 2-3 days and has 5-10 offers above asking price. Our house is a small "starter home" at the low end of the price spectrum, which are selling the fastest. They usually have 5-10 cash offers, over asking price, within 2-3 days. Nobody in this area accepts contingent offers because it's a lot easier and expeditious to sell to the person offering cash with no inspection.

We have enough equity in our house that we could get a HELOC loan and were wondering if we could use that as a down payment, then once we've gone into contract, sell our house and refinance?

Hi everyone! I hope this is the right place to post my question. We are trying to build an addition to our house (garage) as well as pave our driveway, change the siding and windows so we applied for a HELOC and were approved. I am wondering if this is the way to go or if there are better options? We have money saved up but this is a fairly big project so we need a loan. The credit union is offering 50k for 3.75 rate (variable-which is the part that scares me). Other than that, we have decent income, credit, career and our only debt is our current mortgage. I would be grateful for any other advice. Thanks!

I'm looking to get a HELOC to do some home improvement, and I'm wondering if anyone has had any positive/negative experience doing anything home equity related with any local lender.

I met briefly with my financial advisor and she mentioned that I should get a HELOC. She quickly explained what it was…but I would like clarification. How does it work? How do I access it?

I have about 75K in credit card debt all cards averaging about 20-22% APR. I have looked around for personal loans and home equity loans. A HE loan is costing around 7.99% and pays off the whole credit card debt and is over a period of 10 years. A personal loan has slightly high interest rates 11.25% and only 5 years, but the payment is almost double. I’m leaning towards the HE loan and pay it like I would do the personal loan. And if in case I couldn’t make the 2X amount a month I could still pay the required minimum amount and not run into default. I’m looking to pay this off pretty fast in about 2-3 years aggressively. The HE loan has a early payment penalty of $500 if I pay off before first 3 years, but that’s all, they’re saying it’s a $0 closing costs. Any advice is appreciated, thank you in advance!!

Just kidding. Holding 9k, buying more weekly!

Probe Research

Home Equity Line of Credit Study - $350 (90-120 Minutes) We are looking for people with a home equity line of credit (not a mortgage – this is a line of credit where you borrow against your homes equity). It lasts 90-120 minutes and you will need to log into your account on both a laptop/desktop and iPhone/android via app as part of the study. If interested, please fill out our pre-survey at: https://www.surveymonkey.com/r/QDZ8NDV

I have a bit of a unique situation. I have a home valued at 400k which I owe outright. This was purchased in 2007 for $179k. In 2015 I suffered health problems that kept me out of the workforce for 1 year and allowed for part time work til early 2020. I could no longer afford my home so my grandparents very graciously paid the remaining mortgage so I could keep the house. In the last year my health has returned and I am working full time, earning about 4K per month. I would like to use the equity in my home to cover all of my delinquent accounts and repair my credit now that I'm healthy and gainfully employees. The debt comes out to about 12,000 dollars. I have terrible credit. Last checked it was about 520. Has anyone been able to secure a loan using their homes equity with credit as bad as mine. I am getting married in October and would like to get everything cleared up by then.

I added my home equity line of credit as a linked account. It's showing up in the "All Accounts" category, but when I click on the "Budget" Category it doesn't show up at all. Why wouldn't it automatically show there? My linked credit card accounts are showing. How do I get my Line of Credit to show in the budget?
Also for category, it says "Category not needed" Why the heck wouldn't it need a category?

Hi everyone,

Last September a 25,000 pound, 100-year old Live Oak fell on my house from a hurricane, causing structural damage to the tune of $50k+.

Luckily, insurance is covering repairs, but they aren't covering the $10,500 it cost to remove the fell tree.

I've been looking at HELOCs and Home Equity Loans. I have about $50k in equity in my home and other than my mortgage, no debt.

If I'm having to spend $10k (and maybe more on home repairs), would you recommend either option?

Alternatively, if I have to spend a large amount of money, ideally I'd like to maximize any kind of credit card promotional offers (sign-ups bonuses, 0% intro purchases or 0% BTs).

Has anyone had experience utilizing credit cards when dealing with insurance settlement money? Any potential red flags or landmines to look out for?

Any benefit to using HELOCs or HELs over credit cards?

Thanks in advance! Kris

Hi All, thank you for taking the time, I'm at my wits end with these people...

My parents got themselves into a terrible financial situation and they're trying to do everything they can to keep their house.

They overspent and didn't budget for the last 5 years and got themselves into $165k of debt. This is split across a dozen credit cards and their car.

I suggested a cash out refinance, because they have over $300k equity in their $600k home. They applied but were denied because they JUST, by 15 days, let 2 separate payments go overdue. Now their credit is awful and they can't get approved anywhere.

Next option, reverse mortgage, they're working on it now, but it's taken months and I don't think they'll be approved. The debt mountain is too large, there's no excuse except financial mismanagement.

Now, looking at their finances, if everything were peachy keen (which it's obviously not) they can BARELY afford their house in the first place. I've begged them to sell the place and get something smaller. They've refused for a few reasons, mostly emotional, but also because the house is worth less than they paid for it in 2007. Now, that's not a great reason to drown in an ocean of debt, but what do I know? I'm just some idiot who sticks to a monthly budget and lives in a small house I can afford.

I am, of course, pushing for "sell your house, you effed up and you're out of options," but am I overlooking anything?

Debt: $165k Principal on Mortgage: $280k House Should Appraise: $650k - $750k Monthly Income: $10k They are both retired and are 65 and 67 respectively.

Thanks again for your time and any advice, I'm open to any creative suggestions short of a Breaking Bad scenario... my parents would be awful drug dealers.

I never know if I should apply to one of those LenderTree on-line types of companies, but I keep hearing that 2.6 loans are available, how do I get me one of those?

This seems like significant news. Many people would/do rely on a home credit line if they need cash.

Will other banks follow? Wells Fargo is the 4th largest US bank.

Wells Fargo - No New Home Equity

CNBC: Wells Fargo, one of the largest home lenders in the U.S., is stepping away from the market for home equity lines of credit because of uncertainty tied to the coronavirus pandemic.

The bank informed its mortgage personnel of the news Thursday in a conference call, according to a source, and the move was confirmed by company spokesman Tom Goyda.

• Wells Fargo, one of the largest home lenders in the U.S., said it it stepping away from the market for home equity lines of credit because of uncertainty tied to the coronavirus pandemic.

• “Wells Fargo Home Lending will temporarily stop accepting applications for all new home equity lines of credit (HELOCs) after April 30,” the bank said in a statement.

• During tough economic times, HELOCs are riskier products for banks because in a foreclosure, the lender who made the primary mortgage is first in line to get paid in a recovery.

I have a cibc home power plan and was told it my mortgage would include a HELOC that I can use whenever I want, and the only expense would be the interest when I use it. I am just done my second payment and was have a debit charge for 300 for a PROPVALFEE ? What is this?
I am so annoyed with cibc... this is the 4th unexplained charge to my account (1 in chequing, 2 in mortgage, 1 in this heloc now) since i signed my mortgage that had to be reversed or the amount fixed. I doubt I will ever use CIBC for a mortgage again. Not to mention they messed up my downpayment and other headaches between them and the lawyer.

Hi and thanks for reading. I own a home outright (no morgage), valued approximately $230k.
I'm on disability, and my fiance who lives with me also lost a portion of her income, and I've have had to run up some credit cards and make some purchases using Paypal credit over the last year or so.
We also have a cosigned auto loan that we took out for her starting from March 2019 that I've been paying, $11,736, 4.5% ($163 a month for 72 months, I put $16,000 down). My credit was good then, almost 700, but now it's 641 with very high credit usage.

My cash assets are getting low, my income is $1036 a month, and I have $9,358 worth of high interest CC debt. My question is, would a bank (I have a checking and savings account and credit union account), give me a home equity loan fso i can pay all of it off with a lower interest rate and monthly payment?