WdnUlik2no

My dad advised me a HELOC is good thing to have eventhough I don't have any things I need to use it for right now. I don't really know where to start looking for one. My credit is excellent (over 800), and my first inclination was to go to lendingtree.com, so "banks could compete" but I have heard that their rates are pretty high even for people with good credit. Any more choices? Are there potential closing costs with a HELOC?

phipark

Typically, there are no closing costs for HELOC. I know USB and BoA don't have any.

RaviNJCLs

iTrader: (4)

Go with a local bank. What I did was check for any new branches opening in the area. They usually have great promotional rates, especially when your credit is good. I ended up getting a HELOC at a rate about 1.15% less than anywhere else when I did mine.

Will Y.

Do you have any brokerage accounts? The brokers may be able to point you in that direction. We got a HELOC (something like prime rate - 0.75%) through Charles Schwab about 3 years ago; the rate was at least 1% under any other bank's advertised rates.

The only cost of the HELOC was the $20 in notary fees we paid to a notary at the local UPS Store; nothing to Charles Schwab. We applied by phone- 10 minute convo on a Saturday. and it overnighted the closing documents to us for review, signature and return a couple of days later. Used the HELOC once, repaid it a few days later and it's just sitting there for an emergency.

fast-tl

Why do you need one?
I think starting (or increasing) a solid savings habit is better than opening a "Line of debt."

Will Y.

Bail money...

moeronn

IDK how about Schwab and the brokrage firms are, but most banks will charge an annual fee ~$75.

Will Y.

There isn't any annual fee on our HELOC from Charles Schwab.

WdnUlik2no

I guess for emergencies and other unexpected expenses. I have about 10 months of income saved up, I had a lot more than that before I was out of a job for 5 months, and I'm building that up again. I don't have any debt other than my house, car and student loan, and don't carry balances on my credit cards.

I am just following my dad's advice on this one because he is the best money manager that I know. I'm not going to use it in the forseable future so it really won't be any more debt until I use it. It was just real scary being out of job that long because I started to wonder if I would ever get another job. In the event that reserves run out and I get laid off again, it would be hard for me to get a HELOC then.

BigPimp

Yeah, hit up Schwab. I work for the same company that actually originates these loans under the Schwab name. Great easy process, good rates and no fees. i did mine that way as well. go to www.schwabbank.com.

HELOC is good to have because that is the only way to access equity in your home should you need it.