home equity lines of credit

Don't know about current deals, but Sovereign/Santander had LIBOR pegged HELOCs a little while back. We are paying an absurdly low rate on ours.

thanks, i looked them up online, hey have an initial rate below prime foe first 12 months, but then they go up 1.5 pouts after that.maybe they have better rates if i contact them directly

Nothing says financial freedom like a heloc! Go team RE.

When the w-2 falters, take a little out from your prepaid rent ETFs. Go team Re

W67, your one size fits all approach to HELOCs is pretty pedestrian. We could pay ours off in 24 hours if necessary. Instead, we have structured our finances so that we are producing wealth with the heloc-- not diminishing it. the key for us was deciding which money we had would be used for what purpose. but there are always assets available to pay off the heloc the moment the balance shifts if interest rates rise and make it no longer a sensible way to do business. On top of the benefit we already are receiving, it is even greater once the interest deduction on the HELOCs is factored in. Those who have been able to take advantage of and leverage these low interest rates are doing very well indeed in e last few years. "Lmao" knee jerk reactions to HELOCs is silly. Using a HELOCs to take a vacation? Yeah, I laugh with you. But hat isn't what we are talking about here.

Helocs by definition is a regressive tax. Like college loans/tuition bill based upon the net assets of parents.

The more parents save and not spend on things like housing, cars, vacations and prada shoes, the more that family pays in tuition.

Isn't it enough that prepaid renters get $500k cap gain tax free, subsidized interest loans and a fed put on a single asset (so arbitrary) and to top it all off an interest deductible Revolver? Bc you are humane in killing your slave and the particular state you live allows it, doesn't make it right.

We never seem to learn. HELOC's were the fuel behind the housing crisis. Can't put down a proper down payment, you shouldn't be buying a home.

KW, what are you doing with the HELOC money? Leveraging financial assets or doing something else?

If you are looking to borrow for financial assets, I think a HELOC is hardly the lowest-rate option. Sub-1% possibilities are available if you don't care about the term option (i.e., you have plenty of assets to cover things). Also, I think the interest from any form of borrowing is deductible against investments.

Yes, it is available depending on the exact scenario. Feel free to reach out if you would like to discuss.

Mitchell
mcohen@firstrepublic.com
NMLS# 20577