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