HELOC question

[Marita40]

I took out a no-cost HELOC with Affinity right before I retired this last January. All online, and an easy process. They responded promptly to every question. I have no immediate plans to use it, but it is there as one more safety net.

 

[old medic]

Well so far for us its a BUST.... Was afraid the house rebuild would be a catch....
Maybe once we get it done

 

[MarieIG]

DH got a pre-approval for a HELOC in the mail, and he is retired. Zero cost to set up, but a $50 a year fee. Interest was tied to a prime rate. I'm sure there were a lot of strings not included in the offer. Into the trash it goes.

 

[pb4uski]

I dont understand HELOC's. So you can secure a HELOC and not actually use it? Which means there is no penalty, just money waiting for you in the event you want to tap into it.

If the time comes and you want to use the loan, are interest rates really low to pay it back?

HELOC = Home Equity Line of Credit

A line of credit secured by your home equity. Interest rates are usually a stated rate plus a fixed spread... like prime + x%.