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I purchased my first home in Oct 2009 and the equity value is 100k more. I was pre approved for a home equity loan without asking from PNC for 75k. Of course I wouldn’t want that much but I was thinking about instead of saving $800 a month for home repairs that cost over $6,000, I could just get this line of credit for 10k and pay monthly payment. I want a fixed rate, but don’t understand the terminology to getting this loan. (i.e., prime rate, apr, LTV or LVT or something like that) etc. Anyone ever had a problem with a bank when getting this type of loan. And/or do you think its good idea.
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I purchased my first home in Oct 2009 and the equity value is 100k more. I was pre approved for a home equity loan without asking from PNC for 75k. Of course I wouldn’t want that much but I was thinking about instead of saving $800 a month for home repairs that cost over $6,000, I could just get this line of credit for 10k and pay monthly payment. I want a fixed rate, but don’t understand the terminology to getting this loan. (i.e., prime rate, apr, LTV or LVT or something like that) etc. Anyone ever had a problem with a bank when getting this type of loan. And/or do you think its good idea.
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Tags: Equity Line Of Credit, Home Equity Line, Pnc
3 responses to Is it a good idea to get a home equity line of credit?
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Very little chance of getting a HELOC anymore.
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I think if you limit yourself to 10K, you should be fine. They have changed things since I got my HOC line of credit and have made it more confusing. Just ask for a fixed rate since interest rates are bound to go up. Plus, you can write the interest from the HOC off from your taxes. I didn;t have any problems when I got my HELOC, but my credit is super excellent.
Is it a good idea to get a home equity line of credit?
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It depends on how urgent the home repairs are… if you can wait, then I would do the savings method because you wouldn’t be paying any interest on that money. The prime rate is the rate of interest that the bank will charge you. The apr is the annual percentage rate, it’s an annual percentage calculated after origination fee, interest, insurance, etc for a loan. LTV stands for Loan-To-Value… in other words, it’s the total loan compared to the total value of the home, Most banks now are only lending about 80% Loan to Value, ie… if you have a house worth 100k total, they can only loan you 80k… which would equal a 80% Loan to Value. Hope that helps.
Is it a good idea to get a home equity line of credit?
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