Home Equity Loan
I applied for home equity credit thru chase. Is this a good or bad idea?
I need $11K for a new roof. It is going to be a lot of work up there, so I asked for $2,000 more than they bid the job in case of some wood rot or some other extra's. I requested a fixed rate and no closing cost, so they offered me the $11K for the loan at a fixed rate of 7.8% interest for 4 yrs. They said they would offer me an adjustable rate of $25,000 and if I need to borrow more than the $11,000 they would let me borrow and fix that rate. They also said no closing cost. What do you think? Can I find a better deal somewhere else? I need to add, the roof is leaking water all over the place, and I have a trash can sitting next to me to catch the rain water,so this is kind of an urgent matter. Also, this is a 2 story house with an add on addition and a garage with a big tear off since I think we need to know what is under the roofing.
Public Comments
- Taking out a home equity loan for a new roof, something unexpected, unanticipated, and must be done---good idea. Taking out home equity loan to buy a car, go on vacation, or for something that really isn't needed---poor idea. It sounds like you did a very sensible thing, especially taking out an extra 2M. the rate, it sounds good. They are very competitive. I'd go for a fixed rate. Just suppose we have a case of double digit inflation. Your"adjustable rate:' might soar to 18%. This you need like, well, like a roof that leaks. Go for the fixed.It sounds like you are very concerned about your personal fiances .This is good. This is very good. You are using credit wisely.
- Take the adjustble rate. NON FIXED. As you make payments on an adjustable, your monthly payment will go down. and you will have a credit line availible for 10 years. An adjustable rate loan is a Two Way street. You can pay and take out as needed. If you choose a fixed payment, (which they want you to do) Your payment will remail the same regardless of whether you pay it down. And it is a locked loan. A Oneway Street A fixed rate insures the bank that they can forcast assets and accounts recievable in comming times ahead, Its in their favor.
