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Posted: 9/18/2004 3:09:43 AM EST
[Last Edit: 9/18/2004 3:51:05 AM EST by Big-Big1]
I don't know chit about them could you give me the low down on the good the bad and the ugly?
Who is good to deal with? Who is not? What should I be looking out for?
Who has the best fixed rates ect!
Thanks
BIG
Link Posted: 9/18/2004 3:55:16 AM EST
TTT
Link Posted: 9/18/2004 3:57:05 AM EST
[Last Edit: 9/18/2004 3:58:21 AM EST by JCKnife]
Don't know anything about the banks in your area--maybe try the hometown forum?

Look for a loan where the rate is the same as prime. THat's as good as it's going to get.

Well worth it, IMHO.

ETA: a fixed rate is going to be higher than an adjustable one, but you get the benefit of knowing it will never go up.
Link Posted: 9/18/2004 4:01:57 AM EST
I had excellent luck with Wells Fargo for a home loan. Countrywide tried to screw me so badly I'd still be walking funny 2 years later. CW tried to shove a 9% loan down my throat AFTER I had been pre-approved at 6.5%.
I went to Wells Fargo 3 weeks before closing and basically begged if they could do anything. Guy looked at me with a smile and said "We got some paperwork do to, and not much time to do it".
Anyways, long and short of it, we humped through paperwork and 18 days later I had a loan for 4.375%.
Link Posted: 9/19/2004 4:28:51 AM EST
anybody else?
Link Posted: 9/19/2004 4:37:34 AM EST
I think they are a really bad idea for most people. The concept is that you can borrow against the equity in your home. The common mistakes people make are:

1. Borrowing money for 15 years to pay off short term debt or debt they shouldn't have gotten into to begin with.

2. Thinking they will have the discipline to pay it off quickly, rather than in decades. If you had that sort of discipline, you would have saved money already.

3. Borrowing money to make a woman happy. This is 100% gar-ren-teed to fail.

4. After all the credit cards are paid off with the HEL, most people just start charging the cards up all over again.

Been there, done that, have the pending divorce to show for it.
Link Posted: 9/19/2004 4:40:38 AM EST
Try your local bank, don't go with any of the mortgage brokers, they will try to make at least 3% off you.
Link Posted: 9/19/2004 5:01:03 AM EST
I am looking to put up a steel building and buy some more equipment I owe very little on my current home and equipment but I think now is the time to be a little more agresive with the business perhaps I am looking into the wrong type of loan???
Link Posted: 9/19/2004 5:09:15 AM EST
Check into the legal implications of having a home equity loan to expand your business versus a business loan that uses your home as collateral. I don't know the answers, but these are questions worth asking. Are you incorporated? If you don't have a CPA, now might be a good time to get one.
Link Posted: 9/19/2004 5:16:45 AM EST

Originally Posted By Big-Big1:
I am looking to put up a steel building and buy some more equipment I owe very little on my current home and equipment but I think now is the time to be a little more agresive with the business perhaps I am looking into the wrong type of loan???



If you need a fixed amount of money then a home equity loan is a good idea. The rates if you shop around are very low. You are putting your house up as collateral so there is really little risk to the bank. As you already know, the interest is tax-deductable which is a big savings. Where else would you get the money? Borrowing against a 401K is a bad idea since you can't deduct interest, though the interest is paid back to you. A straight loan will have ungodly interest rates. If your business is booming then go for it.
Link Posted: 9/19/2004 6:01:24 AM EST
It makes sense to dig yourself out of higher interest debt, as long as you truly change your spending habits. You can't lose if you live in an area where your property values are sure to increase. There are other good reasons for a Home Equity loan, but they are few. It may make more sense to refinance for a lower rate, change to a 15 year plan, and pay off your house.

True freedom is having all the deadly features on your AR, having no house payment, and no car payment.

I know, it is tough to defy the odds and actually live debt free. I am still adjusting.
Link Posted: 9/19/2004 7:02:46 AM EST
If you are borrowing for a buisiness, wouldn't you be better off getting a loan for the corporation, so that your house would not be put at risk?

For best rates, Check your local credit union.
Link Posted: 9/19/2004 7:06:31 AM EST
Agree with BillOfRights to check with your local credit union. Best rates, and in my experience, quickest procedure.
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