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February 24, 2008 at 3:39 PM #159465February 24, 2008 at 4:35 PM #159105
CoronitaParticipantThe concept of a HELOC is freakin' nuts, write a check and it's added to your loan balance, who the h*ll ever thought up this idea and when? I suspect there are thousands of realtors and mortgage brokers currently living off their HELOCS, I personally know a few of them. This will be devastating news to many.
Actually, for some of the financially responsible, I don't think it was a bad idea. Just that it's been well over abused.
Really, let's say someone "needs" to buy car and is financially responsible. Why not borrow on a heloc and get a lower rate than through traditional financing? Makes sense to me. Someone mentioned about the heloc stretching the terms out 30years …. But I thought you could pay the car off early even with a heloc.
The only issue I see is that a lot of people go in over their head with this as an open atm. Well, some people are idiots, that's their problem. Though, I have to admit, I've never purchased a new car other than paying it off in full the moment I left the dealership- so I can't relate.
It's no different than CC. Some people use that as an open atm, and pay 19-20% apr on their balance, while others use CC because it's convenient, and not only pay off the balance in full each month, but get something back from the CC company.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:35 PM #159400CoronitaParticipantThe concept of a HELOC is freakin' nuts, write a check and it's added to your loan balance, who the h*ll ever thought up this idea and when? I suspect there are thousands of realtors and mortgage brokers currently living off their HELOCS, I personally know a few of them. This will be devastating news to many.
Actually, for some of the financially responsible, I don't think it was a bad idea. Just that it's been well over abused.
Really, let's say someone "needs" to buy car and is financially responsible. Why not borrow on a heloc and get a lower rate than through traditional financing? Makes sense to me. Someone mentioned about the heloc stretching the terms out 30years …. But I thought you could pay the car off early even with a heloc.
The only issue I see is that a lot of people go in over their head with this as an open atm. Well, some people are idiots, that's their problem. Though, I have to admit, I've never purchased a new car other than paying it off in full the moment I left the dealership- so I can't relate.
It's no different than CC. Some people use that as an open atm, and pay 19-20% apr on their balance, while others use CC because it's convenient, and not only pay off the balance in full each month, but get something back from the CC company.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:35 PM #159412CoronitaParticipantThe concept of a HELOC is freakin' nuts, write a check and it's added to your loan balance, who the h*ll ever thought up this idea and when? I suspect there are thousands of realtors and mortgage brokers currently living off their HELOCS, I personally know a few of them. This will be devastating news to many.
Actually, for some of the financially responsible, I don't think it was a bad idea. Just that it's been well over abused.
Really, let's say someone "needs" to buy car and is financially responsible. Why not borrow on a heloc and get a lower rate than through traditional financing? Makes sense to me. Someone mentioned about the heloc stretching the terms out 30years …. But I thought you could pay the car off early even with a heloc.
The only issue I see is that a lot of people go in over their head with this as an open atm. Well, some people are idiots, that's their problem. Though, I have to admit, I've never purchased a new car other than paying it off in full the moment I left the dealership- so I can't relate.
It's no different than CC. Some people use that as an open atm, and pay 19-20% apr on their balance, while others use CC because it's convenient, and not only pay off the balance in full each month, but get something back from the CC company.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:35 PM #159418CoronitaParticipantThe concept of a HELOC is freakin' nuts, write a check and it's added to your loan balance, who the h*ll ever thought up this idea and when? I suspect there are thousands of realtors and mortgage brokers currently living off their HELOCS, I personally know a few of them. This will be devastating news to many.
Actually, for some of the financially responsible, I don't think it was a bad idea. Just that it's been well over abused.
Really, let's say someone "needs" to buy car and is financially responsible. Why not borrow on a heloc and get a lower rate than through traditional financing? Makes sense to me. Someone mentioned about the heloc stretching the terms out 30years …. But I thought you could pay the car off early even with a heloc.
The only issue I see is that a lot of people go in over their head with this as an open atm. Well, some people are idiots, that's their problem. Though, I have to admit, I've never purchased a new car other than paying it off in full the moment I left the dealership- so I can't relate.
It's no different than CC. Some people use that as an open atm, and pay 19-20% apr on their balance, while others use CC because it's convenient, and not only pay off the balance in full each month, but get something back from the CC company.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:35 PM #159493CoronitaParticipantThe concept of a HELOC is freakin' nuts, write a check and it's added to your loan balance, who the h*ll ever thought up this idea and when? I suspect there are thousands of realtors and mortgage brokers currently living off their HELOCS, I personally know a few of them. This will be devastating news to many.
Actually, for some of the financially responsible, I don't think it was a bad idea. Just that it's been well over abused.
Really, let's say someone "needs" to buy car and is financially responsible. Why not borrow on a heloc and get a lower rate than through traditional financing? Makes sense to me. Someone mentioned about the heloc stretching the terms out 30years …. But I thought you could pay the car off early even with a heloc.
The only issue I see is that a lot of people go in over their head with this as an open atm. Well, some people are idiots, that's their problem. Though, I have to admit, I've never purchased a new car other than paying it off in full the moment I left the dealership- so I can't relate.
It's no different than CC. Some people use that as an open atm, and pay 19-20% apr on their balance, while others use CC because it's convenient, and not only pay off the balance in full each month, but get something back from the CC company.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:43 PM #159110CoronitaParticipantIt's interesting that you think it is a good idea to use a home equity loan to buy a car but not OK to pay for a kitchen remodel.
My memory may be wrong because I never thought of taking money out of home equity for anything but to "improve" the home –
but am I mistaken that there was a time that Heloc money HAD to be spent on the home? And it was only when consumer debt interest became non-tax-deductable that it suddenly became the thing to use Heloc money for non-home related purchases?
It's generally a BAD idea to "finance" a home remodel of any sort, which is a "WANT". period…Doesn't matter where you're borrowing money from. Generally, a car is a "NEED" (though the brand can make it a "WANT"), unless you live in NYC.
Remodelling, in most cases, is not something that one "HAD" to do prior to moving into a home.
Seems like a lot of people during the past couple of years can't distinguish between "NEEDS" versus "WANTS" and when one should borrow and when one shouldn't.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:43 PM #159405CoronitaParticipantIt's interesting that you think it is a good idea to use a home equity loan to buy a car but not OK to pay for a kitchen remodel.
My memory may be wrong because I never thought of taking money out of home equity for anything but to "improve" the home –
but am I mistaken that there was a time that Heloc money HAD to be spent on the home? And it was only when consumer debt interest became non-tax-deductable that it suddenly became the thing to use Heloc money for non-home related purchases?
It's generally a BAD idea to "finance" a home remodel of any sort, which is a "WANT". period…Doesn't matter where you're borrowing money from. Generally, a car is a "NEED" (though the brand can make it a "WANT"), unless you live in NYC.
Remodelling, in most cases, is not something that one "HAD" to do prior to moving into a home.
Seems like a lot of people during the past couple of years can't distinguish between "NEEDS" versus "WANTS" and when one should borrow and when one shouldn't.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:43 PM #159417CoronitaParticipantIt's interesting that you think it is a good idea to use a home equity loan to buy a car but not OK to pay for a kitchen remodel.
My memory may be wrong because I never thought of taking money out of home equity for anything but to "improve" the home –
but am I mistaken that there was a time that Heloc money HAD to be spent on the home? And it was only when consumer debt interest became non-tax-deductable that it suddenly became the thing to use Heloc money for non-home related purchases?
It's generally a BAD idea to "finance" a home remodel of any sort, which is a "WANT". period…Doesn't matter where you're borrowing money from. Generally, a car is a "NEED" (though the brand can make it a "WANT"), unless you live in NYC.
Remodelling, in most cases, is not something that one "HAD" to do prior to moving into a home.
Seems like a lot of people during the past couple of years can't distinguish between "NEEDS" versus "WANTS" and when one should borrow and when one shouldn't.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:43 PM #159423CoronitaParticipantIt's interesting that you think it is a good idea to use a home equity loan to buy a car but not OK to pay for a kitchen remodel.
My memory may be wrong because I never thought of taking money out of home equity for anything but to "improve" the home –
but am I mistaken that there was a time that Heloc money HAD to be spent on the home? And it was only when consumer debt interest became non-tax-deductable that it suddenly became the thing to use Heloc money for non-home related purchases?
It's generally a BAD idea to "finance" a home remodel of any sort, which is a "WANT". period…Doesn't matter where you're borrowing money from. Generally, a car is a "NEED" (though the brand can make it a "WANT"), unless you live in NYC.
Remodelling, in most cases, is not something that one "HAD" to do prior to moving into a home.
Seems like a lot of people during the past couple of years can't distinguish between "NEEDS" versus "WANTS" and when one should borrow and when one shouldn't.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 24, 2008 at 4:43 PM #159496CoronitaParticipantIt's interesting that you think it is a good idea to use a home equity loan to buy a car but not OK to pay for a kitchen remodel.
My memory may be wrong because I never thought of taking money out of home equity for anything but to "improve" the home –
but am I mistaken that there was a time that Heloc money HAD to be spent on the home? And it was only when consumer debt interest became non-tax-deductable that it suddenly became the thing to use Heloc money for non-home related purchases?
It's generally a BAD idea to "finance" a home remodel of any sort, which is a "WANT". period…Doesn't matter where you're borrowing money from. Generally, a car is a "NEED" (though the brand can make it a "WANT"), unless you live in NYC.
Remodelling, in most cases, is not something that one "HAD" to do prior to moving into a home.
Seems like a lot of people during the past couple of years can't distinguish between "NEEDS" versus "WANTS" and when one should borrow and when one shouldn't.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
February 25, 2008 at 5:54 AM #159361raptorduck
ParticipantIf I win the debate with my wife on “fixer upper” vs. “turn key” new, we will end up with a fixer upper. My plan for our finalists in that category is a remodel over 5 years. Why, because I will be paying cash for the remodel. The last thing I want to do is put 30% down and then eat away at it in a falling market with a HELOC. We will stage the remodel and use cash for the entire thing.
Mind you, however, I am not above using deferred cash options, such as no interest financing. I did that with the recent remodel of my current home. When the 0% interest term came up for expiration I paid the balance in full and got a 0% interest loan for 12 months paid with cash I put into a CD for that purpose. You pay for current benefit with future money or current money that gets a bit above inflation ROI.
February 25, 2008 at 5:54 AM #159660ParticipantIf I win the debate with my wife on “fixer upper” vs. “turn key” new, we will end up with a fixer upper. My plan for our finalists in that category is a remodel over 5 years. Why, because I will be paying cash for the remodel. The last thing I want to do is put 30% down and then eat away at it in a falling market with a HELOC. We will stage the remodel and use cash for the entire thing.
Mind you, however, I am not above using deferred cash options, such as no interest financing. I did that with the recent remodel of my current home. When the 0% interest term came up for expiration I paid the balance in full and got a 0% interest loan for 12 months paid with cash I put into a CD for that purpose. You pay for current benefit with future money or current money that gets a bit above inflation ROI.
February 25, 2008 at 5:54 AM #159673ParticipantIf I win the debate with my wife on “fixer upper” vs. “turn key” new, we will end up with a fixer upper. My plan for our finalists in that category is a remodel over 5 years. Why, because I will be paying cash for the remodel. The last thing I want to do is put 30% down and then eat away at it in a falling market with a HELOC. We will stage the remodel and use cash for the entire thing.
Mind you, however, I am not above using deferred cash options, such as no interest financing. I did that with the recent remodel of my current home. When the 0% interest term came up for expiration I paid the balance in full and got a 0% interest loan for 12 months paid with cash I put into a CD for that purpose. You pay for current benefit with future money or current money that gets a bit above inflation ROI.
February 25, 2008 at 5:54 AM #159679ParticipantIf I win the debate with my wife on “fixer upper” vs. “turn key” new, we will end up with a fixer upper. My plan for our finalists in that category is a remodel over 5 years. Why, because I will be paying cash for the remodel. The last thing I want to do is put 30% down and then eat away at it in a falling market with a HELOC. We will stage the remodel and use cash for the entire thing.
Mind you, however, I am not above using deferred cash options, such as no interest financing. I did that with the recent remodel of my current home. When the 0% interest term came up for expiration I paid the balance in full and got a 0% interest loan for 12 months paid with cash I put into a CD for that purpose. You pay for current benefit with future money or current money that gets a bit above inflation ROI.
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