Anonymous Poster
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- Sep 27, 2005
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Was making some changes on my homeowners insurance the other day and at the end of my conversation my agent asked if I knew about their loans available via equity line of credit.
Here's what my company will do. You can start up a line of credit secured against your home. They will handle all paperwork and there is a $40 fee payable at the time the credit line opens. If you don't use the credit line from year to year there is an annual $25 record keeping fee. The current interest rate is 4.75% and the interest is tax deductible. The payback is amortized over 7 years and there is no charge or limits on early payoff.
Downside of this is that the rate is tied to prime and as such is not a fixed rate product.
I bring this up because the current rate is about 3 percent less than what I secured with Deere and the tax deductibility of the interest is always a good thing. I'm considering paying off the Deere loan with the credit line. I realize that this is not a fit for everyone, but may be a good option for some.
Bob
Here's what my company will do. You can start up a line of credit secured against your home. They will handle all paperwork and there is a $40 fee payable at the time the credit line opens. If you don't use the credit line from year to year there is an annual $25 record keeping fee. The current interest rate is 4.75% and the interest is tax deductible. The payback is amortized over 7 years and there is no charge or limits on early payoff.
Downside of this is that the rate is tied to prime and as such is not a fixed rate product.
I bring this up because the current rate is about 3 percent less than what I secured with Deere and the tax deductibility of the interest is always a good thing. I'm considering paying off the Deere loan with the credit line. I realize that this is not a fit for everyone, but may be a good option for some.
Bob