Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 02-23-2020, 01:42 PM   #1
Full time employment: Posting here.
Join Date: Oct 2012
Location: Reno
Posts: 836

I vaguely remember a thread from last year. The part-time gig ends in May, so I've considered applying for a HELOC, in part out of a vague memory (and perhaps inaccurate) that home equity loans including HELOCs are difficult to qualify for after wage income ends.
I'm of several minds on this, since I doubt we would have much need for one, particularly after two years from now when I will be able to also tap DW's IRAs. I could see the need at the end of the year for bridge money to avoid selling funds in the brokerage account or for emergency cash needs for the DSs, although they both are independent.
Bank of America apparently has a low/no fee HELOC, with I think a minimum loan of 25k, so I've been thinking over the pros/cons (including whether it's worth the trouble); the no yearly fee is attractive. I am troubled by what I heard on the previous threat of the Great Recession, in which banks pulled back availability of equity loans.

Our house in Reno is paid for and has gone up in value to about 480k or so. I'm limited to 3 withdrawals per year from my 403b, although I don't see that as much of an issue since I take the yearly withdrawal at the beginning of the year (it can take 2-3 weeks to withdraw money however). And again, the brokerage fund has a bit over 100k, with money available in about 3 days after selling a fund. So a HELOC might be an over-abundance of caution.

RobLJ is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-23-2020, 02:51 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
Join Date: Mar 2003
Posts: 17,368
I would suggest getting one. They amount to a free option. If you don't need it, you don't use it. Shop around for a better deal. If you qualify for Navy Federal membership, they have good pricing and terms with no fees or required draw. I have read good things about Third Federal as well. Pen Fed used to be my go-to, but they seem to have revamped their offering to one less attractive than it used to be.

"A person is smart. People are dumb, panicky dangerous animals and you know it."

- Kay, Man in Black
brewer12345 is offline   Reply With Quote
Old 02-23-2020, 02:59 PM   #3
Thinks s/he gets paid by the post
mpeirce's Avatar
Join Date: Feb 2012
Location: Columbus area
Posts: 2,269
We lined up a HELOC last year. It wasn't trivial, but wasn't hard even though we don't have any "income".

What helped is that we have income according to the IRS. It's funny, but ROTH conversions are helpful in qualifying since it's "income".

Now it's sitting there for us to use if we need it (we're doing some renovations on a lake house and so it might very well be useful as a bridge - the reason we got it).

We did this through Huntington Bank - no fees and low rates. They even gave us a larger line of credit than we expected after the appraisal.

It can't hurt to try.
mpeirce is offline   Reply With Quote
Old 02-23-2020, 05:37 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Big_Hitter's Avatar
Join Date: May 2013
Location: In the fairway
Posts: 5,417
Originally Posted by brewer12345 View Post
I would suggest getting one. They amount to a free option. If you don't need it, you don't use it. Shop around for a better deal.
+1 - I think this is the simplest way to mitigate sequence of return risk
Swing hard, look up
Big_Hitter is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
HELOC REWahoo FIRE and Money 19 09-05-2010 07:58 AM
HELOC question laurence FIRE and Money 9 10-09-2005 09:39 AM
the HELOC eridanus FIRE and Money 8 05-08-2005 08:33 AM
Credit-union HELOC offer, no closing costs Nords FIRE and Money 4 11-06-2004 07:15 AM
HELOC Interest Deductibility Question grumpy Other topics 2 10-25-2004 05:13 PM

» Quick Links

All times are GMT -6. The time now is 02:18 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.