On Fri, 28 Jul 2006, dbutcherd[at]gmail.com <dbutcherd[at]gmail.com> wrote:
- quote -

When I refinanced my existing mortgage last year for lower fixed interest
and shorter term, they gave me a free HELOC (just to borrow paid principal
if needed sometime). There are no annual or other fees, other than
variable interest if I use it. So it costs nothing to have it available.
And its interest is deductable (within originally borrowed principal).
Although, credit card teaser rates are still lower than its interest after
deductions. But in a pinch, minimum payment for the HELOC is just
interest.

Not sure what initial cost is for a separate HELOC, but it may require an
appraisal if you do not have a recent one, and likely an annual fee.

In article <1154115333.865985.229570[at]i42g2000cwa.googlegroups.com> ,
dbutcherd[at]gmail.com wrote:

- quote -

If you want to use a H/E loan as an emergency fund, you need to
open it long before you need it. The reason is that you might
now qualify when you need it, so get it while you do qualify.

Appraisal and assessment have nothing in common. Appraisal is
used for real estate deals. Assessment is done by the government
for purposes of property tax. The government does not know about
appraisals, so there is no connection.

-john-

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

Can someone explain what benefit I may get by opening a HELOC at the
same time I purchase a new home and obtain a new mortgage?

My thought is that if I wait to open the account later, it will cost me
the appraisal fee again, etc. Also, if the home then appraises for
more money, does that put me on the hook for higher taxes the next time
property is assessed?

Any other thougths are appreciated.

Side question... Has anyone delt with Amerisave.com? They seem to
have the lowest quoted mortgage rates.



Dave