Comments on: Using a HELOC as an Alternative to Refinancing http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html The off-beat personal finance blog for responsible people Mon, 22 Mar 2010 12:51:14 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Home loan modification http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-4212 Home loan modification Sat, 06 Mar 2010 03:22:16 +0000 http://lenpenzo.com/blog/?p=482#comment-4212 The trick is getting the mother-in-law to agree to the reverse mortgage. I have talked to many seniors about the concept of the reverse mortgage - none of them liked the idea of it - they want their home to go to their heirs, not a bank. .-= Home loan modification´s last blog ..<a href="http://www.findingmortgagerates.com" rel="nofollow">mortgage rates</a> =-. The trick is getting the mother-in-law to agree to the reverse mortgage. I have talked to many seniors about the concept of the reverse mortgage – none of them liked the idea of it – they want their home to go to their heirs, not a bank.
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]]> By: barrie mortgage http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-3746 barrie mortgage Fri, 19 Feb 2010 00:23:01 +0000 http://lenpenzo.com/blog/?p=482#comment-3746 Just a quick message 2 thx you 4 your interesting post. Do u know where I can find more on the subject? x Just a quick message 2 thx you 4 your interesting post. Do u know where I can find more on the subject? x

]]> By: Eliseo Trapalis http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-3339 Eliseo Trapalis Sat, 06 Feb 2010 14:41:25 +0000 http://lenpenzo.com/blog/?p=482#comment-3339 Pretty wonderful entry, genuinely informative stuff. Never ever imagined I would find the information I would like in this article. I have been scouring throughout the internet for some time now and had been starting to get frustrated. Thankfully, I happened onto your blog and acquired precisely what I had been looking for. Pretty wonderful entry, genuinely informative stuff. Never ever imagined I would find the information I would like in this article. I have been scouring throughout the internet for some time now and had been starting to get frustrated. Thankfully, I happened onto your blog and acquired precisely what I had been looking for.

]]> By: Refinancing With A HELOC, Lehman Brothers Collapse http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-1227 Refinancing With A HELOC, Lehman Brothers Collapse Wed, 16 Sep 2009 07:51:26 +0000 http://lenpenzo.com/blog/?p=482#comment-1227 [...] Penzo suggests that we can use a HELOC as an alternative to refinancing. He offers a case study that shows you how it can [...] [...] Penzo suggests that we can use a HELOC as an alternative to refinancing. He offers a case study that shows you how it can [...]

]]> By: Mortgage Man http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-543 Mortgage Man Sat, 20 Jun 2009 05:46:29 +0000 http://lenpenzo.com/blog/?p=482#comment-543 Very nice. Thanks for this. Very nice. Thanks for this.

]]> By: Len Penzo http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-90 Len Penzo Sat, 31 Jan 2009 19:53:12 +0000 http://lenpenzo.com/blog/?p=482#comment-90 Dave, Good point and I should have mentioned it. I considered the possibility of interest rates getting to a point that would make life uncomfortable for my MIL, and concluded there would be enough options available to us that would allow her to keep her home and reduce her payments. The most drastic being I would simply pay off her HELOC -- which isn't as bad as it sounds since she only owes $40,000 on a house worth $200,000. The interest rates would have to go very high for this to happen. But she is not a loose cannon with regards to spending; she is disciplined and as a result I am confident she will be okay. Len Dave,

Good point and I should have mentioned it.

I considered the possibility of interest rates getting to a point that would make life uncomfortable for my MIL, and concluded there would be enough options available to us that would allow her to keep her home and reduce her payments. The most drastic being I would simply pay off her HELOC — which isn’t as bad as it sounds since she only owes $40,000 on a house worth $200,000. The interest rates would have to go very high for this to happen.

But she is not a loose cannon with regards to spending; she is disciplined and as a result I am confident she will be okay.

Len

]]> By: Dave http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-86 Dave Fri, 30 Jan 2009 14:43:30 +0000 http://lenpenzo.com/blog/?p=482#comment-86 It's a good idea, but with a big caveat. HELOC rates are usually tied to the prime rate, which is about as low as it is ever going to get. My HELOC is currently at 3.5%. Unfortunately, the prime rate can fluctuate a lot (see: http://www.moneycafe.com/library/primerate.htm). True, even if prime gets to 10%, the monthly interest payment is not going to get to $400, but it's important that your MIL not base her budget on the $100 payment since it has nowhere to go but up. It’s a good idea, but with a big caveat. HELOC rates are usually tied to the prime rate, which is about as low as it is ever going to get. My HELOC is currently at 3.5%. Unfortunately, the prime rate can fluctuate a lot (see: http://www.moneycafe.com/library/primerate.htm). True, even if prime gets to 10%, the monthly interest payment is not going to get to $400, but it’s important that your MIL not base her budget on the $100 payment since it has nowhere to go but up.

]]> By: Carnival of Money Stories No. 94 http://lenpenzo.com/blog/id482-using-a-heloc-as-an-alternative-to-refinancing.html/comment-page-1#comment-70 Carnival of Money Stories No. 94 Tue, 27 Jan 2009 14:24:33 +0000 http://lenpenzo.com/blog/?p=482#comment-70 [...] Penzo presents Using a HELOC as an Alternative to Refinancing posted at Len [...] [...] Penzo presents Using a HELOC as an Alternative to Refinancing posted at Len [...]

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