When Not to Draw on Your Home Equity Line of Credit
Image Celebsiren.com
When Not to Draw on Your Home Equity Line of Credit
Author:Ari Socolow
on March 12, 2018
- modified on December 18, 2018
For many years, we have written about appropriate and inappropriate reasons to have a home equity line of credit. In particular, home equity lines of credit can be used to consolidate more expensive debt (credit card, education loans, etc.) and can be used by consumers to even out irregular cash flow. We’ve even cited cases where the affluent can use home equity lines to their advantage.
Drawing on your home equity line jeopardizes your home if you cannot service the loan and repay the principal. Therefore it is not without risk.
From the news this week, we have an example of a case where one really shouldn’t be drawing on their home equity line. To be clear, nobody should be drawing on their home equity line in order to pay hush money to an adult film actress just before a Presidential Election to enable the Russians to complete their goal of electing a pawn as the U.S. President. Michael Cohen has set a precedent that we do not recommend you follow.
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.
Your code to embed this article on your website* :
*You are allowed to change only styles on the code of this iframe.
Is it necessary to put YOUR OPINION OF POLITICAL ISSUES in the conversation about banking? What's wrong with you, people? Don't you see how DISGUSTING you look and sound? Millions of hard-working Americans held a different view and they (me including) AREN'T INTERESTED IN YOUR BS! How shameful and sickening.
JC
November 05, 2021
Ignaz is obviously a Trumpite, pro-Russia influencing our elections, not a fan of truth, and probably a anti-vaxer as well. Just reading this in 2021. Best laugh I've had since Jul 25, 2018!
Conditions… Variable APR of Prime minus 1.01% in all states. Min loan amount $10,000. Max loan amount $200,000. 30-year term. Annual fee waived for the first year. See conditions for guarantee at thirdfederal.com.
Third Federal rate are typically 20% lower than other leaders
Guaranteed Lowest Rate
No closing costs, prepayment penalties, or minimum draw requirements
The Figure Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
Fastest way to turn home equity into cash
Flexible terms, redraw up to 100%, borrow $20k-$400k
Approval in 5 minutes. Funding in as few as 5 days
Use to consolidate debt or finance your next home project
Home Equity Lines, Refinance, & Second Mortgages
Unlock your Home’s Equity for Cash
Low Rates: Instant Quote & Credit Approval
Over $100 Billion Funded. 21 Years in Business
Comments
Ingaz
July 25, 2018
Is it necessary to put YOUR OPINION OF POLITICAL ISSUES in the conversation about banking? What's wrong with you, people? Don't you see how DISGUSTING you look and sound? Millions of hard-working Americans held a different view and they (me including) AREN'T INTERESTED IN YOUR BS! How shameful and sickening.
Is this review helpful? Yes:2 / No: 19
JC
November 05, 2021
Ignaz is obviously a Trumpite, pro-Russia influencing our elections, not a fan of truth, and probably a anti-vaxer as well. Just reading this in 2021. Best laugh I've had since Jul 25, 2018!
Is this review helpful? Yes:0 / No: 0
Add your Comment
or use your BestCashCow account