I finally left my little bank that i've have been a member of since I was in high school. I left it for Chase because I got $100 free and the conversion was fairly simple. Although, I still have to change a few of my direct deposits. But all in all I'm glad I did it because I can access Chase from Yodlee, my online money manager. Well, while I was opening the account the rep asked if I wanted to open an home equity line of credit (HELOC). I said yes because I knew it would raise my credit score. More on why it would increase my score later. So, I applied and I was approved at an interest rate of 12% with a credit score of 660. Hmmm, I thought it was kinda high but didn't say anything.
I close on Saturday and in the back of my head my imaginary Single Ma has been telling me that I need to shop around. I'm a procrastinator but Midfirst is giving away $100 with a HELOC. OOh, so free money got me moving and I called a rep. The rep told me that with a credit score of 660 I should have a 9.5% interest rate. Hmmm, that is much better than 12%. I don't plan to ever use it but just incase, I need it lower.
I like Chase so I am going to see if they can do a counter offer. But I am getting ahead of myself. The rep could be wrong about the interest rate and it may be higher.
By the way HELOC interest rates can increase or decrease over time. Chase offered me 4% over the prime interest rate. Midfirst was talking about 1.5% over the prime interest rate.
I'll also need to compare the fees?
Do I have the option of paying interest only?
The yearly fees?
Am I charged a yearly fee if i don't use it?
How long must I keep it open to avoid a fee?
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1 comment:
Nice blog, thanks for the comment on my book review.
I didn;t know that a HELOC would raise you credit score. I don't have a home but I would love to hear why.
Good job shopping around and trying to squeeze out some free money while your at it, keep hustlin:)
Congrats on the weight loss as well
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