"Creative" Finacing of an EXOTIC!

Just got a $120,000 home equity loan at 5.5% for 3 years at my local bank.The only extra cost was $120 for a title search but no closing cost,no appraisals and blah blah.I personally think i got a pretty good deal both,interest rate as well as time wise,what do you all think ?

 

The real good deal part of the whole process is what are you going to do with that $120K worth of you home's value?

 

Put your home to work. It's the single best financial instrument anyone has and the government lets you do it twice. Do it right and you safeguard your home for as long as you wish. Do it wrong and well...not good. Some people are strong advocates of paying cash for toys outright and I respect that. I'm on the other side of the fence. I like using OPM as much as possible and putting it to work.

 

Well as far as I am concerned I got my loan for 5% or 1% depending on how you look at it..............I didn't pay cash..............but I have cash to do other things if need be. I didn't do a home equity or line of credit........still can if and when I find an appropriate reason. All in all, I just feel that 5% out with a 4% in is a 1% loan 1% , and I have cash on hand, and home equity available for another "project" or investment.............it isn't that bad a position to be in.

I'm glad this has initiated some great ideas, options and discussion.........mission accomplished.

Kerry

 

Three and half years ago i borrowed $240,000 at 8% to buy a medical practice and since i was a new kid on the block that was the best rate i could secure back then.I didn't own a house at the time and so no home equity for me.I called the bank the other day and found out that i have paid about $70,000 towards the principal and about $58,000 ( mad ) towards the interest so far.
So i paid some cash towards the balance and got the remaining $120,000 at 5.5% for 3 years with the same $3,600 monthly payment.The good part is i would only pay $10,000 interest in 3 years as compare to God knows how much with the other ****ty bank....Hopefully i'll have this **** paid with in next year or two..

 

>>>Why limit yourself to 80%? Or even 50%?<<<


WHY? TEXAS regulations, that's why! I agree, I don't like the limits either. In other states that limit, no limit, is differnt. In Minnesota you can go to 125% of the home's value.

True, WaMu's lending guidelines are a bit conservative, but that is the way thay are. Each bank has their own credit guidelines.