"Michael A. Covington" <look[at]www.covingtoninnovations.com.for.address> wrote
in message news:u7-dndwwpJUHY-Pd4p2dnA[at]speedfactory.net...
- quote -

If you're really close to the edge, I can see where a couple of hundred
bucks a month might make a difference - where you could lose the car but
keep the house. Instead, you might end up having a car and losing the
house.

"lpogoda" <lpogoda[at]hotmail.com> wrote in message
news:92f50927.0404150817.17012daf[at]posting.google.com...
- quote -

Yes... but if I couldn't pay my bills, I'd have to sell the house anyway.

"Michael A. Covington" <look[at]www.covingtoninnovations.com.for.address> wrote in message news:<Ls-dnTWuu6EfbuDdRVn-uw[at]speedfactory.net> ...
- quote -

Suppose you buy a new car and finance it with an auto loan. If you
fail to make the payments, the finance company will come and repossess
the car.

Suppose you buy a new car and finance it with a check drawn against a
home equity line of credit. If you fail to make the payments, the
lender can take your house.

"Lou" <lpogodajr292185[at]comcast.net> wrote in message
news:mvmdnXgdDKGWSuDd4p2dnA[at]comcast.com...
- quote -

Yes... perhaps a bit more directly than other things... but the way I see
it, if I got to where I couldn't pay my bills, I'd be in danger of losing my
house whether it was the HELOC or something else that I couldn't pay.

"FGreen" <fastgreen2000[at]yahoo.com> wrote in message
news:d31579b8.0404132155.6ad1f539[at]posting.google.com...
- quote -

Well, yes, but there is a difference. With a HELoC, you're putting your
house on the line - defaulting on your payments could mean losing your
house.

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:140420040906044804%john[at]johnweeks.com...

- quote -

I agree. That is wise advice. Because it is not keyed to your income, a
HELOC won't disappear if you lose your job.

In article <d31579b8.0404132155.6ad1f539[at]posting.google.com> ,
FGreen <fastgreen2000[at]yahoo.com> wrote:
- quote -


Of course you can close it. Depending on your lender there may be a fee
for closing it before a certain amount of time has passed.


Dimitri

"FGreen" <fastgreen2000[at]yahoo.com> wrote in message
news:d31579b8.0404132155.6ad1f539[at]posting.google.com...
- quote -

Certainly. This is exactly what I did when I got a better deal on another
HELOC at a lower interest rate. The second bank paid off the first one,
which closed the account.

In article <d31579b8.0404132155.6ad1f539[at]posting.google.com> , FGreen
<fastgreen2000[at]yahoo.com> wrote:

- quote -

Yes, when you make your final payment, you will have the option
of keeping it open, or closing the account. If you have a 0 balance,
you can close it anytime.

- quote -

Open credit accounts do not really hurt your credit score unless
you have way too much credit for your income level. Having credit
and using it in a wise manner is good for your score.

One purpose of a H/E line of credit is to be an emergency fund
in the event that something bad happens. In that case, you might
not qualify for the loan when you need it, so keeping one sitting
around is cheap insurance, even if it does cost you a few points
on the FICO score.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

In article <d31579b8.0404132155.6ad1f539[at]posting.google.com> ,
fastgreen2000[at]yahoo.com (FGreen) wrote:
- quote -

I can't imagine that you couldn't close an unused home equity
account, but the best person to ask is your banker who issued
you the line of credit. Also, do not assume that closing such
an account would improve your credit score. Since home equity
lines of credit are secured by your home, I doubt they would
reduce your credit worthiness, but again, you can probably find
this out for sure by discussing this question too with your banker.

So, I think I understand the HELoC. It essentially is like a credit
line that you can tap into if necessary, much like how credit card
works.

My question is, after you use the credit line (say take out $20k), can
you close it upon paying it off? I don't mean letting it just sit
there with no balance, but closing the line as you'd close/cancel a
credit card account.

I ask this because when I checked my credit report/score, it showed
all open credit accounts, and I was told that having many such credit
accounts can be negative for the credit score. Doesn't hurt the score
nearly as much as having late payments, but I see how they can be
viewed as a source of liability.

Anyone ever use the credit line, pay it off, and ask them you don't
want the line of credit anymore?

Thanks in advance.