Re: Home Equity - hidden costs?

From: WDStancil <WDStancil@aol.com>
Subject: Re: Home Equity - hidden costs?
Date: Thu, 14 May 1998 09:42:17 EDT

Next Article (by Author): Any advice for fraud victim? bonsai@channel1.com
Previous Article (by Author): RE: Home Equity loan or Auto Loan Stephan Iscoe
Articles sorted by: [Date] [Author] [Subject]

> The question I have though is that are their any hidden costs 
>  associated with home equity loans?  (Fees, early payment
>  costs, etc.?) One thing I have seen is that the home equity
>  loans often have an introductory rate (as low as 6% in some
>  cases) so if there was no cost associated with pre-paying 
>  the loan (and no closing/settlement costs), whats to prevent
>  someone from taking a short loan at 6% with the intention
>  of paying it back in full in 6 months -- and repeating --
>  essentially getting a 6 month line of credit at v. low interest.

Well, the financing institution is betting you'll keep a balance on the
credit line - just like credit card issuers.

Opening a home equity line is much the same as getting a mortgage.
But many institutions will run specials and absorb all the closing costs,
so check around for the best deal.

- -

Go to Jeff Salisbury LWGate Home Page.