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After approval for loan I was offered an additional flex equity line of credit. Should I accept it?

Loan is at docs and I was offered a flex equity line of credit in excess of $100,000 to run concurrent with the first mortgage.  I am not using it but it is ready for the future.  Should I accept it and keep for dire emergencies?  Inherited the home so lots of equity.
  • August 04 2009 - Garden Grove
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Answers (4)

Best Answer

Most HELOCs have an annual fee. Find out about that. Most have an early termination charge. Find out about that. If those terms are reasonable, it's probably not a bad idea to have some liquidity available to you. Stay disciplined - though - be not tempted to dip into it casually.

  • August 04 2009
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As you can see, this is a case where you have to be named Mike (or Michael) in order to respond. Please don't try this otherwise - we can't guarantee the results.
  • August 04 2009
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What Mike & Mike said! Liquidity is always nice and sometimes needed. I would rather have it and not need it, then need it and not have it.
  • August 04 2009
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I agree with Mike.  It's a positive opportunity that may not be available in the future.  Just make sure you understand all the terms and fees
  • August 04 2009
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