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Getting paid to close out a HELOC?
07-08-2008, 12:25 PM
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#1
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Full time employment: Posting here.
Join Date: Aug 2005
Location: Philly 'burbs
Posts: 547
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Getting paid to close out a HELOC?
We have a zero balance on our HELOC, with $250,000 available. Rate is at prime. Right now we don't have much in the way of after-tax accounts, so we were keeping this around as an emergency found.
I got a letter yesterday from my HELOC company, though, and if we close out our HELOC, they'll send us $400. We think we'll be taking them up on the offer. In the case of an emergency, we can always get another HELOC, albeit at (I'm sure) at a lower credit limit.
Anyone else hear of being paid to close a HELOC?
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07-08-2008, 12:29 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Never heard of it. Bizarre. Can you tell us who the lender is?
Might be worth talking to Pen Fed or someone similar to line up a new HELOC.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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07-08-2008, 12:30 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Just make sure it doesn't cost you $400 or more to set up the new HELOC.
Sounds like some banks are using carrots rather than sticks to clear some of these out...
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07-08-2008, 12:43 PM
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#4
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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 Quote:
Originally Posted by brewer12345
Never heard of it. Bizarre. Can you tell us who the lender is?
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... 'cuz we want to short that stock before their next SEC filing!
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07-08-2008, 12:45 PM
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#5
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by Nords
... 'cuz we want to short that stock before their next SEC filing!
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Shhh...
Actually, I think its a better and more creative way of dealing with a line you are nervous about than just cutting the customer off (which tends to PO them). Of course, my immediate reaction would probably be to draw the entire line immediately...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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07-08-2008, 12:49 PM
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#6
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gone traveling
Join Date: Aug 2006
Posts: 994
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This is interesting.
I also would like to know the lender's name.
~
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07-08-2008, 12:54 PM
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#7
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Full time employment: Posting here.
Join Date: Aug 2005
Location: Philly 'burbs
Posts: 547
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National City Mortgage.
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07-08-2008, 12:55 PM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by Kronk
National City Mortgage.
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That explains a lot. Surprised they didn't just cut you off.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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07-08-2008, 01:48 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,681
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We have a zero balance HELOC open at Huntington (what we refer to as The Stupid Bank, for a variety of reasons). We keep it "just in case" and haven't used it in years. I'd love it if they'd offer us money to close it. I'm only keeping it open because if I ask they waive the yearly fee.
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07-08-2008, 02:01 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 1,015
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Quote:
Originally Posted by Kronk
National City Mortgage.
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National City is doing all kinds of stuff to try to improve their financials. Lately they've offered 5% CDs, incentives to open new savings/checking accts, and other specials.
Here's a recent CNN story about them...
National City confirms regulatory agreement
from the CNN article:
National City, like many other banks, has struggled in recent months due to the sharp downturn in the housing market and rising defaults among many types of loans, especially mortgages and home equity products. National City lost $171 million during the first quarter, largely due to losses tied to the mortgage and real estate markets.
In April, National City raised about $7 billion in new capital to shore up its balance sheet.
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