Originally Posted by COcheesehead
I see some folks on here suggesting getting a HELOC before FIRE.
What about margin? The interest rate is very low on margin ( I think about 1.5% on my account right now) and there is no annual fee. If you are only going to tap into one or the other only in case of an emergency or an opportunity, why would you pay the annual fee for the HELOC. Educate me here.
Edit, I just checked and the rates start closer to 4% and can go as high as 9% for small loans. So that enters into the equation, but that is still better than using a credit card and no annual fee like the HELOC.
HELOC is much cheaper than margin for me
My current HELOC rate (1-250k): 3.3% no annual fee
FIDO Margin: Fidelity's current Base Margin Rate, effective since 01/12/09, is 6.575%.
Debit balance Margin rate Effective rate
$100,000–$499,999 Base 6.575%
$50,000–$99,999 Base + 0.50% 7.075%
$25,000–$49,999 Base + 1.00% 7.575%
$10,000–$24,999 Base + 1.50% 8.075%
3.75% rate available for debt balances over $500,000