HELOC Frostbite — OUCH

[(former)FormerSanDiegan]

It is not just to have it in the bank. It is so that it is in the bank to enable buying one or several properties at a huge discount instead or sitting on the sidelines while other people buy them up.

This is a good point. It’s not like someone would borrow money at 6% and stash it in savings at 3% indefinitely. They should obviously have an exit strategy or a planned use of those funds in the future that will pay off.

[patientlywaiting]

I read somewhere about a Realtor who was planning to using is HELOC to pay his mortgage and get buy while business is slow. Oh well, too bad…

I think that word “equity” is the key here. Without equity, there’s no line of credit.

[patientlywaiting]

I read somewhere about a Realtor who was planning to using is HELOC to pay his mortgage and get buy while business is slow. Oh well, too bad…

I think that word “equity” is the key here. Without equity, there’s no line of credit.

[patientlywaiting]

I read somewhere about a Realtor who was planning to using is HELOC to pay his mortgage and get buy while business is slow. Oh well, too bad…

I think that word “equity” is the key here. Without equity, there’s no line of credit.

[patientlywaiting]

I read somewhere about a Realtor who was planning to using is HELOC to pay his mortgage and get buy while business is slow. Oh well, too bad…

I think that word “equity” is the key here. Without equity, there’s no line of credit.

[patientlywaiting]

I read somewhere about a Realtor who was planning to using is HELOC to pay his mortgage and get buy while business is slow. Oh well, too bad…

I think that word “equity” is the key here. Without equity, there’s no line of credit.

[meadandale]

“I think that word “equity” is the key here. Without equity, there’s no line of credit.”

Which essentially means that you are borrowing against your house.

Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.

[meadandale]

“I think that word “equity” is the key here. Without equity, there’s no line of credit.”

Which essentially means that you are borrowing against your house.

Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.

[meadandale]

“I think that word “equity” is the key here. Without equity, there’s no line of credit.”

Which essentially means that you are borrowing against your house.

Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.

[meadandale]

“I think that word “equity” is the key here. Without equity, there’s no line of credit.”

Which essentially means that you are borrowing against your house.

Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.

[meadandale]

“I think that word “equity” is the key here. Without equity, there’s no line of credit.”

Which essentially means that you are borrowing against your house.

Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.

[EconProf]

BobS
FormerSanDiegan and Rustico: you guys get it. Radelow & meadandale need to reread my original post. It is about having the liquidity to swoop in and buy at the bottom.
The 3% differential is the cost of keeping liquid. It is not for consumption, mortgage payments, or to look at. It is to keep handy for a screamingly good investment when the bottom comes. When a desperate seller gets my purchase offer with a low-ball price, and a carbon copy of the bank cashier’s check I’ve just drawn with his name on it for the amount I am willing to pay and with a 7-day closing, no financing, then the “cash is king” rule will apply.
BTW, businesses large and small, routinely pay an annual fee to have access to a bank line of credit, just in case of emergency.

[EconProf]

BobS
FormerSanDiegan and Rustico: you guys get it. Radelow & meadandale need to reread my original post. It is about having the liquidity to swoop in and buy at the bottom.
The 3% differential is the cost of keeping liquid. It is not for consumption, mortgage payments, or to look at. It is to keep handy for a screamingly good investment when the bottom comes. When a desperate seller gets my purchase offer with a low-ball price, and a carbon copy of the bank cashier’s check I’ve just drawn with his name on it for the amount I am willing to pay and with a 7-day closing, no financing, then the “cash is king” rule will apply.
BTW, businesses large and small, routinely pay an annual fee to have access to a bank line of credit, just in case of emergency.

[EconProf]

BobS
FormerSanDiegan and Rustico: you guys get it. Radelow & meadandale need to reread my original post. It is about having the liquidity to swoop in and buy at the bottom.
The 3% differential is the cost of keeping liquid. It is not for consumption, mortgage payments, or to look at. It is to keep handy for a screamingly good investment when the bottom comes. When a desperate seller gets my purchase offer with a low-ball price, and a carbon copy of the bank cashier’s check I’ve just drawn with his name on it for the amount I am willing to pay and with a 7-day closing, no financing, then the “cash is king” rule will apply.
BTW, businesses large and small, routinely pay an annual fee to have access to a bank line of credit, just in case of emergency.

[EconProf]

BobS
FormerSanDiegan and Rustico: you guys get it. Radelow & meadandale need to reread my original post. It is about having the liquidity to swoop in and buy at the bottom.
The 3% differential is the cost of keeping liquid. It is not for consumption, mortgage payments, or to look at. It is to keep handy for a screamingly good investment when the bottom comes. When a desperate seller gets my purchase offer with a low-ball price, and a carbon copy of the bank cashier’s check I’ve just drawn with his name on it for the amount I am willing to pay and with a 7-day closing, no financing, then the “cash is king” rule will apply.
BTW, businesses large and small, routinely pay an annual fee to have access to a bank line of credit, just in case of emergency.

[Author]

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