Quote:
Originally Posted by Alfisti
I am not sure it is worth getting a HELOC for 15K. Not sure what you expect to do around the house for 15K tbh, shit adds up FAST. For something that small I would just look into a personal loan.
FWIW our HELOC is revolving, using random numbers, the bank says OK the house is worth $1M, your mortgage is 350K, we will lend you another $300K and as you pay the mortgage down your LOC can increase so you always have the ability to borrow $650K. AGain these are random figures to give you an idea.
The advantage here is interest rates are low on the LOC, usually prime +1% here. There's also no penalty for paying down the LOC portion in big clumps and it also means you can consolidate all debt into this product at super low rates, including car loans etc.
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OKC doesn't have an insane market like you have north of the border. I purchased my house 4 years ago and it was already completely remodeled. Granite in kitchen, both baths and the bar, new roof, all new utilities (HVAC and water heater).
The main reason is basically every type of borrowed money that isn't a credit card has a lower rate than the current rate of inflation (and the Feds are about to start raising rates).
It's mainly a few things I'd like to have done before the spring (have a few LARGE trees removed that are barely hanging on after two rough ice storms in the last 15 months and the landscaping to fix the massive patches of dirt that result for a few years if you don't), the chimney needs some substantial repairs to be safe to use again, and a few little extras since we plan on staying here for the next 4-5 years.
We had started looking at larger homes last year since we are both permanent remote workers, but housing prices have become so insane........I enjoy our mortgage only being about 1/8th of our take home pay.