Edit

Forums ›
Finance

Ways to reduce interest on Home Equity LOC Archived From: Finance

  • tweet this
  • Post to Facebook
  • Text Only
  • Search this Topic »
  • Classic
  • Go to Page :
  • 1 23
alert mods    
   posted: Jun. 13, 2006 @ 4:56p

I have borrowed 120K with 9% interest only APR from my Line of credit (maxed out). What are the ways I can reduce my total interest and save money.

I have couple of choices i m looking into:
one from mbna - dept-free plan with 7.49% APR utpo $50000,
3.9% for first 6 months upto $9500 in my existing discover card account.

I am getting some offers from chase and citibank for 0% APR for first 12 months, but applying to thes would decrease my credit score further. Do you guys suggest anything?


   posted: Jun. 13, 2006 @ 4:56p

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


alert mods    
   posted: Jun. 13, 2006 @ 5:27p

Facing $1k in interest per month, why didn't you look into this before you maxed out your credit and worked your way into a corner?

Just wondering. And without more details it's pretty hard to provide meaningful insight.


alert mods    
   posted: Jun. 13, 2006 @ 5:36p

If that is your HELOC, then I am going to assume that you have a "first" mortgage? If so, how much is that mortgage for?

You will likely get better suggestions here but I'd like to open it up by asking if you could you just refinance and combine the mortgages at a fixed rate? 9% sounds high and I just couldn't get my little brain around how to work 0% credit cards to be able to pay off 120K without a really high salary but there are guys here that probably can, as I am a newbie.

Just out of curiosity, how did it get so high? Home improvements?


alert mods    
   posted: Jun. 13, 2006 @ 5:45p

I live in California. I didnt have much choices for the houses. I bought a house for 660K with 0% down. I know it was risky and silly, but I went for it. My First mortgage is $528,000 at 6.35%. Now I am trying to reduce my interest cost.


alert mods    
   posted: Jun. 13, 2006 @ 6:04p

I think given your circumstances, take the credit score hit and apply for 0% BT. Lots of others have done so in similiar position.

Just make sure you apply the principles of APP-O-RAMA with the main idea being that if you collect all these BTs and apply for them simultaneously so the likelihood of getting more of them approve will increase.

After an APP-O-RAMA and with high utilization due to BT, you're credit score will take a nose dive. So don't expect to get great rates on future loans, credit card offers, etc. Its usually not as bad as you think its going to be. Just remember to pay off your debts on time and manage your debt well. Eventually the 0% BT game will run out on you if you don't plan to pay it down!


alert mods    
   posted: Jun. 13, 2006 @ 6:14p

SoftwareDeveloper said:one from mbna - dept-free plan with 7.49% APR utpo $50000IIRC, the MBNA plan has APRs from 7.49% ?


alert mods    
   posted: Jun. 13, 2006 @ 6:18p

I have offer from MBNA. It is Debt-Free Plan. It offers upto $50000 at non-variable rate as low as 7.49% APR for upto 72 months.


alert mods    
   posted: Jun. 13, 2006 @ 6:55p

What's the address? I want to buy it at the foreclosure sale.

Seriously folks, this is what happens to adjustable rate financing. Didn't anyone see this coming?


alert mods    
   posted: Jun. 13, 2006 @ 6:58p

SoftwareDeveloper said:I have offer from MBNA. It is Debt-Free Plan. It offers upto $50000 at non-variable rate as low as 7.49% APR for upto 72 months.Other than 7.49%, what APRs might you get instead on the $50k ?


alert mods    
   posted: Jun. 13, 2006 @ 7:00p

dcwilbur said:What's the address? I want to buy it at the foreclosure sale.


Phone number is 1-800-747-7277.


alert mods    
   posted: Jun. 13, 2006 @ 7:03p

Alcibiades said:SoftwareDeveloper said:I have offer from MBNA. It is Debt-Free Plan. It offers upto $50000 at non-variable rate as low as 7.49% APR for upto 72 months.Other than 7.49%, what APRs might you get instead on the $50k ?

I can keep paying 9% rate on my HELOC and get the tax break on the interest. I don't know which option is better.


alert mods    
   posted: Jun. 13, 2006 @ 7:11p

Isn't California one of those state that let you walk away from a house free and clear? If so, run!


alert mods    
   posted: Jun. 13, 2006 @ 7:17p

Wow... just wow... no wonder the FED needs to raise the rates...

Get a second mortgage at a fixed rate.
If your credit took a hit, wait awhile and do the refinancing.
Take the time to do it once an right.

Else, I second the BT and app-o-rama.


alert mods    
   posted: Jun. 13, 2006 @ 7:29p

I was planning to improve my credit score and refinance after few months. What do you say on this? Would my credit score reduce a lot by taking mortgage and HELOC?


alert mods    
   posted: Jun. 13, 2006 @ 7:32p

SoftwareDeveloper said:I was planning to improve my credit score and refinance after few months. What do you say on this? Would my credit score reduce a lot by taking mortgage and HELOC?You didn't mention this before. I think the 30 year fixed is still at a reasonable rate right now if you can afford the payment. Get in on that if you can.

Check your real credit score at myfico.com


alert mods    
   posted: Jun. 13, 2006 @ 7:32p

SoftwareDeveloper said:I was planning to improve my credit score and refinance after few months.Rates may be higher after a few months.


alert mods    
   posted: Jun. 13, 2006 @ 8:39p

Alcibiades said:SoftwareDeveloper said:I was planning to improve my credit score and refinance after few months.Rates may be higher after a few months.

Especially for "C" and "D" credit risks.


alert mods    
   posted: Jun. 13, 2006 @ 8:45p

sell the house or do a refi into a 30 year fixed loan

or is your primary mortgage an ARM at something like 4%?


alert mods    
   posted: Jun. 13, 2006 @ 10:30p

It amazes me how many people did not see this coming. The moral of the story is if you have an adjustable rate mortgage or HELOC do anything within your power to lock your rate now. Our bank scoffed at us when we insisted on refinancing our HELOC to a fixed rate last fall (we were not able to do it sooner, otherwise we would have done it last summer)--who's laughing now?


 Close

Sign Me In
Nickname: 
Password: 
Remember My Login Information:

Forget your login information?

Not Already A Member?
Sign Up Now!


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.


While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2009