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the HELOC
Old 05-07-2005, 02:20 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
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Take out a HELOC at 5.75% with a 5 year draw period and 10 year repayment period. Wait 4 years until rates rise. Draw down and put into a T-bond earning >5.75%.

Foolproof arbitrage. What am I missing?
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