Comments on: What is a HELOC?

By: RB @ RichBy30RetireBy40

RB @ RichBy30RetireBy40 — Wed, 29 Jul 2009 03:57:12 +0000

Hey Guys – I wanted to share with you my HELOC philosophy. Essentially, we need it, and we need to spend all of it!

I think you’ll find the post intriguing.

http://www.richby30retireby40.com/2009/07/go-broke-to-win-big-heloc-edition.html

By: Ryan

Ryan — Sun, 27 Jan 2008 18:58:46 +0000

I’m glad that worked out for you! I’m not sure it would work for everyone’s situation, but obviously that was a wonderful opportunity for you.

By: Kristin

Kristin — Sun, 27 Jan 2008 18:53:07 +0000

I used a HELOC to pay off my home mortgage! WAMut first called me to re-finance. Their new rates were slightly lower than my loan, but I had plans to pay it off early and when I ran the numbers it just was not worth the paperwork. WAMut called back and suggested paying off my mortgage with a HELOC over 2.5 pts less than my loan – I took it and paid it off before the rate climbed back to my original mortgage rate.

By: Living Off Dividends

Living Off Dividends — Sun, 27 Jan 2008 17:26:01 +0000

don’t forget, HELOCs can be used as an asset protection tool as well!

By: FourPillars

FourPillars — Sat, 26 Jan 2008 18:37:11 +0000

it’s like using a backhoe to plant a tulip bulb.

Hey, if the tulip bulb is big enough…?

By: Ryan

Ryan — Sat, 26 Jan 2008 16:38:46 +0000

LOL – agreed. Great analogy.

By: Ron@TheWisdomJournal

Ron@TheWisdomJournal — Sat, 26 Jan 2008 16:37:32 +0000

I agree, don’t get me wrong, it CAN be a good tool. Too many times though, it’s like using a backhoe to plant a tulip bulb. And very few people know how to operate a backhoe.

By: Ryan

Ryan — Sat, 26 Jan 2008 16:02:44 +0000

Ron, You’re right. Lenders will almost always give you the maximum number you can afford to borrow, rather than a prudent amount you can borrow. The problem with that scenario is that it doesn’t give you any room for other expenses. I think a HELOC can be a good tool if used properly, but usually there are better options.