Should I close my home equity account when I transfer the balance to a credit card?
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Should I close my home equity account when I transfer the balance to a credit card?
Posted: Mon Apr 10, 2006 12:07 pm
Oh. OK. My HELOC doesn't work that way.
So just find out the minimum balance you need to maintain to avoid the closing fee.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Guest: Tack
Posted: Mon Apr 10, 2006 2:12 pm
I just started reading more about this heloc. They issued me a credit line of 7500.00. It seems that the finance charges are based on the average daily balance.
Im new to all of this. In fact when I refinanced my home, I showed up at closing with check in hand for all closing costs. The mortgage lender somehow convinced me that day that it would be easier and much more convenient to roll my closing costs into a heloc. People can be pretty convincing for a kick back.
So I think I will try and transfer a chunk of the balance, yet keep the account open with small monthly payments to avoid that 300 bucks. At first I was under the impression that I was paying interest on that 7500.00.
Thanks for the help guys.
BTW, I also have to pay my home owners insurance and property taxes into escrow,,,,Does anyone know how to drop the escrow account and pay them yourself? After discovering some of these high -yield online savings accounts, that seems like a better place for the money to sit rather than in an escrow account.
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Guest: tonyb
Posted: Mon Apr 10, 2006 3:02 pm
Quote:
But if it gets paid all off they could consider it closed and bill you the three hundred....
I would be surprised if paying off it off entirely actually closed the account. I have zero balance with my HELOC, and it remains open. I'd suggest calling the bank and asking them to make sure (and write down who you talked to, in case they tell you wrong, which happens sometimes).
Another reason not to close it is that HELOCs look like lines of credit I believe, and if you closed it your debt to credit ratio would be affected, potentially dinging your credit score.
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SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Should I close my home equity account when I transfer the balance to a credit card?
Posted: Mon Apr 10, 2006 12:07 pm
Oh. OK. My HELOC doesn't work that way.
So just find out the minimum balance you need to maintain to avoid the closing fee.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Tack
Posted: Mon Apr 10, 2006 2:12 pm
I just started reading more about this heloc. They issued me a credit line of 7500.00. It seems that the finance charges are based on the average daily balance.
Im new to all of this. In fact when I refinanced my home, I showed up at closing with check in hand for all closing costs. The mortgage lender somehow convinced me that day that it would be easier and much more convenient to roll my closing costs into a heloc. People can be pretty convincing for a kick back.
So I think I will try and transfer a chunk of the balance, yet keep the account open with small monthly payments to avoid that 300 bucks. At first I was under the impression that I was paying interest on that 7500.00.
Thanks for the help guys.
BTW, I also have to pay my home owners insurance and property taxes into escrow,,,,Does anyone know how to drop the escrow account and pay them yourself? After discovering some of these high -yield online savings accounts, that seems like a better place for the money to sit rather than in an escrow account.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: tonyb
Posted: Mon Apr 10, 2006 3:02 pm
Quote:
But if it gets paid all off they could consider it closed and bill you the three hundred....
I would be surprised if paying off it off entirely actually closed the account. I have zero balance with my HELOC, and it remains open. I'd suggest calling the bank and asking them to make sure (and write down who you talked to, in case they tell you wrong, which happens sometimes).
Another reason not to close it is that HELOCs look like lines of credit I believe, and if you closed it your debt to credit ratio would be affected, potentially dinging your credit score.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
