Thank you for your support in helping me grow my business by referral. Many of you have participated in Tracy Irwin's Referral Rewards Program. I'm thrilled to be able to say thank you in this way!
Congratulations to T Sales, Burlington who is the winner of the September 22nd draw for a $100 gas gift card.
To continue the celebration, I will be drawing for a $100 restaurant gift card on December 31, 2009. For every referral you send, your name will be entered into the draw.
What are the Pitfalls with a Home Equity Line of Credit (HELOC)?
HELOCs have become a very popular alternative to the traditional mortgage and offer some unique features that may be an advantage or a disadvantage depending on your specific needs.
HELOCs allow you to continuously borrow to the available credit limit without requalifying. It is very easy to keep your credit amount at the maximum, paying interest only on the principal balance. Great for cash flow, not so great for debt repayment.
HELOCs are reported on your credit bureau. For example, If you have a $100,000 HELOC, it will have a significant impact on your credit score and reduce your ability for further financing.
HELOCs are fully open.
Can be repaid in full at any time without penalty. No pesky pre-payment penalties.
HELOC rates are not guaranteed for the term. In addition to fluctuations with prime, if you had a prime only HELOC product, you may have found yourself with an increase during the sub-prime crisis to prime + 1% or greater.
HELOCs are not portable. If you purchase a new home, you will have to discharge your existing HELOC and set up a new one.
As with any mortgage product, getting the right advice from a mortgage broker - specific to your needs will determine whether a HELOC is right for you! Don't be afraid to ask!