HELOC- Has anyone take one?

DH and I are thinking about doing this to help pay off some high interest debt we have. Has anyone done this recently that can give me some insight as to how the process goes and what is actually involved?

Thanks!

HELOC- Has anyone take one?

I did a straight HEL through Bethpage a few years ago on my old home. We used it to do some renovations. You apply for the loan and then they appraise your home. They will tell you what you qualify for, rates, and length of loan. It will be a second bill in addition to your regular mortgage. There were closing costs, and a closing involved (no attorney) with my HEL im not sure if you do that with a HELOC.

Re: HELOC- Has anyone take one?

We have one through TFCU. The whole process was really easy. You apply and they will send an appraiser out to you. Then they'll tell you what you're approved for. We don't have a mortgage on our home (not sure if that made it easier) but we opened one b/c we were doing a lot of renos. We had a low rate locked in for 2 years and then prime for life after the 2 years. It's always there if we want to use it.

HELOC- Has anyone take one?

I wouldn’t necessarily use it to pay off debt, you are going to accumulate more debt because you have to pay closing costs on the loan. I would look to use a zero interest credit card for a balance transfer to try and pay off credit card debt without the interest accumulating if that’s what you have. If not, I would recommend looking into Dave Ramsey. I like his method to paying off debt I don’t agree with everything but we have been doing it for a year- we modified how much emergency fund because his 1k emergency fund isn’t enough for the island so we focused on building a large one (step 3) then step 2- debt snowball. We didn’t have credit cards but student loans and we paid off 1/2 of them thus far in a year just by following his methodology. Again I don’t agree with everything such as making money to give it but... it’s helpful! Also if you follow instagram look into debt free community there’s tons of ideas on paying off debt! Good luck

Re: HELOC- Has anyone take one?

Bethpage currently has a no closing cost deal.

Everything the previous poster said about bethpage is the same now except there are no closing costs. Only catch is you cant pay off in full for 3 years

Re: HELOC- Has anyone take one?

If you have the Equity, I say do it. I’ve seen it really change people’s finances and take a lot of stress away from paying many monthly payments and not getting anywhere. This gives payment flexibility. I’d look into a credit union. Most have a no closing cost option so there’s no fees to do it at all.

ETA: It probably takes about 3 weeks from start to finish and in most cases a full appraisal is not necessary.

Message edited 3/1/2019 6:42:12 AM.

Re: HELOC- Has anyone take one?

I wouldn't do it. Under new tax laws, unless the HELOC is being used for home improvement, you can no longer deduct the interest.

HELOC- Has anyone take one?

Thanks everyone! I appreciate all the feedback! I wish zero percent cards and other options were open to us, but were just in too far at this point. Ive been told about the credit unions from others as well- so I think that is the route were gonna go. Thanks everyone