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what type of loan?
#9024936
03/26/24 05:16 PM
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Joined: Jul 2008
Posts: 33,450
bigbob_ftw
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Big Sprocket Bob
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Big Sprocket Bob
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I need to take out a loan to remodel our bathroom and install a new fence. The house is paid for so my qestion, is there any difference in a personal loan or an equity line of credit? are the rates or repayment length different?
Ultra MAGA '24.
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Re: what type of loan?
[Re: bigbob_ftw]
#9024939
03/26/24 05:20 PM
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Joined: Sep 2012
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Jimbo1
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I believe you can write off the interest on a HELOC loan...or at least you could at one time.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: what type of loan?
[Re: bigbob_ftw]
#9024944
03/26/24 05:26 PM
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Joined: Mar 2010
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ntxtrapper
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A personal loan is a single amount of money with fixed payments. A line of credit lets you get funds at different times but with variable rates.
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Re: what type of loan?
[Re: bigbob_ftw]
#9024945
03/26/24 05:27 PM
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Joined: Aug 2009
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BigPig
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Weigh the cost difference between a personal loan vs HELOC. Don’t let them talk you into a refi. HELOC has upfront fees and rates are 8-10% right now and they float with the market.
Depending on the total cost, you may look at a 0% interest credit card and just do a balance transfer every year to a new 0% interest card until it’s paid off.
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: what type of loan?
[Re: BigPig]
#9024947
03/26/24 05:29 PM
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Joined: Jul 2008
Posts: 33,450
bigbob_ftw
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Big Sprocket Bob
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Big Sprocket Bob
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Weigh the cost difference between a personal loan vs HELOC. Don’t let them talk you into a refi. HELOC has upfront fees and rates are 8-10% right now and they float with the market.
Depending on the total cost, you may look at a 0% interest credit card and just do a balance transfer every year to a new 0% interest card until it’s paid off. not a bad idea. no way I refi, paid for is a great feeling.
Ultra MAGA '24.
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Re: what type of loan?
[Re: bigbob_ftw]
#9024953
03/26/24 05:34 PM
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Joined: Oct 2005
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Jman
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A HELOC allows you to write off the interest yes. Depending on how much you need, a home equity loan might make sense but would come with more costs up front than a personal loan. However, the rate would be lower than a personal loan and term more favorable in most instances.
Jim Featherston Mortgage Loan Officer - NMLS 2509901 Red Diamond Home Loans 165 S Kimball Ave, Suite 100 Southlake, TX 76092 PH 972-890-3114 Apply at: RDHLoans.com/Jim
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Re: what type of loan?
[Re: bigbob_ftw]
#9024954
03/26/24 05:38 PM
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Joined: Aug 2012
Posts: 15,585
TexFlip
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I'm with BP; a bathroom and fence shouldn't be more than what...$30k. I would get a couple no interest CCs and what you can each month then balance transfer at the end of the zero interest period.
Just to make sure that it is done thoroughly, I go both ways.
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Re: what type of loan?
[Re: TexFlip]
#9024956
03/26/24 05:40 PM
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Joined: Jul 2008
Posts: 33,450
bigbob_ftw
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Big Sprocket Bob
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I'm with BP; a bathroom and fence shouldn't be more than what...$30k. I would get a couple no interest CCs and what you can each month then balance transfer at the end of the zero interest period. I figure it should be right around there. not looking for super fancy.
Ultra MAGA '24.
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Re: what type of loan?
[Re: bigbob_ftw]
#9024966
03/26/24 05:59 PM
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Joined: Jan 2009
Posts: 19,304
Judd
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The CC companies got wise to the game and many require a "transfer fee"...not saying don't go that route but be diligent in your research.
As mentioned the HELOC gives you more flexibility both long and short term at typically a lower interest rate but typically up front closing costs. Another area you need to do some due diligence on and weigh your financial situation the most. Plus pros/cons...obviously a HELOC ties your home to that money in a catastrophic event of a default.
There are no right/wrong answers here, you have to figure out what is best for your short/long term financial needs.
Don't let your ears hear what your eyes didn't see, and don't let your mouth say what your heart doesn't feel
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Re: what type of loan?
[Re: bigbob_ftw]
#9024968
03/26/24 06:04 PM
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Joined: Sep 2012
Posts: 16,061
Jimbo1
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Just go on Nextdoor and request donations (beg) like so many do!
Seriously, hope you make it work out.
We've been wanting to do a kitchen remodel for the last 3 years but medical issues kept putting it off. We're determined to do it this summer, but the wife has cash set aside so no loan.
Last edited by Jimbo1; 03/26/24 06:19 PM.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: what type of loan?
[Re: bigbob_ftw]
#9024990
03/26/24 06:52 PM
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Joined: Dec 2010
Posts: 6,998
hopalong
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check into an equity secured construction loan, funds available as job progresses and probably a bank inspector to back you up.
used to be construction loans were about the cheapest you could get till they rolled over to the long term finance.
not sure how it might work with equity.
lake fork FISHERMANS COVE MARINA - 903 474 7479 reservations
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Re: what type of loan?
[Re: bigbob_ftw]
#9025004
03/26/24 07:20 PM
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Joined: Dec 2011
Posts: 14,302
Ramsey
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Great advise above, if you go the route of CC. Consider a no fee equity line of credit and let it sit dormant. I have one and can access $300,000 in a matter of minutes without the trouble of selling securities. Just a tool in your tool box you may never need, but great to have if you find a reason. Yes variable
Big Beckett!!
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Re: what type of loan?
[Re: Ramsey]
#9025136
03/27/24 12:03 AM
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Joined: Feb 2008
Posts: 14,157
glens
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Great advise above, if you go the route of CC. Consider a no fee equity line of credit and let it sit dormant. I have one and can access $300,000 in a matter of minutes without the trouble of selling securities. Just a tool in your tool box you may never need, but great to have if you find a reason. Yes variable What is the Interest Rate on your CC with a no fee equity line of credit when in use?
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Re: what type of loan?
[Re: bigbob_ftw]
#9025156
03/27/24 12:43 AM
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Joined: Sep 2012
Posts: 16,061
Jimbo1
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Great, now I'm getting bombarded with HELOC ads and recommendations!
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: what type of loan?
[Re: bigbob_ftw]
#9025262
03/27/24 04:36 AM
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Joined: Dec 2020
Posts: 1,429
Sewer rat
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I will be the contrarian. Remodeling a bathroom and a new fence are not emergencies and I can’t imagine going into debt especially with current interest rates for some stupid crap like that. Save up and do it when you can afford it.
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Re: what type of loan?
[Re: glens]
#9025264
03/27/24 05:25 AM
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Joined: Dec 2011
Posts: 14,302
Ramsey
Pepe' Le Pew
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Great advise above, if you go the route of CC. Consider a no fee equity line of credit and let it sit dormant. I have one and can access $300,000 in a matter of minutes without the trouble of selling securities. Just a tool in your tool box you may never need, but great to have if you find a reason. Yes variable What is the Interest Rate on your CC with a no fee equity line of credit when in use? It has ranged from 6.5% to 8.5%.
Big Beckett!!
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Re: what type of loan?
[Re: bigbob_ftw]
#9025278
03/27/24 10:18 AM
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Joined: Feb 2014
Posts: 1,054
Bandit 200 XP
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Take a loan from your 401k
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Re: what type of loan?
[Re: bigbob_ftw]
#9025290
03/27/24 10:51 AM
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Joined: Oct 2008
Posts: 16,853
68rustbucket
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A HELOC with Frost bank is in the 9-12% range. I’d pass on that. Save up and pay cash.
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Re: what type of loan?
[Re: bigbob_ftw]
#9025333
03/27/24 12:13 PM
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Joined: Oct 2013
Posts: 716
upsslim
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You might check out Texas Veterans Land Board. When we put new flooring in our house we took out a loan from them.
East Texas Patriot Guard Rider Flag Captain
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Re: what type of loan?
[Re: bigbob_ftw]
#9025344
03/27/24 12:43 PM
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Joined: Apr 2005
Posts: 44,044
Stub
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Bet the Fed lowers the interest rates at least twice before the election in November to help the POS in the WH's re-election efforts. So if you decide to do a HELOC or Construction loan you might want to hold off and see how that plays out (Fed lowering the rate).
“I never forget a face—but in your case, I’ll be glad to make an exception.” —Groucho Marx
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Re: what type of loan?
[Re: Bandit 200 XP]
#9025791
03/28/24 06:34 AM
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Joined: Dec 2020
Posts: 1,429
Sewer rat
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Take a loan from your 401k Yes that is brilliant. You can’t afford it now while you are working so rob from your retirement that you will be depending on when you no longer have a paycheck. I really don’t agree with a lot that Dave Ramsey says and am not just preaching his kool aid. If you need a loan for a home get one. Buy something reasonable that you can afford. If you need a car loan get one but buy a modest used car. If you are not paying cash and have to get a loan so that you can have transportation do it but get something frugal. If you need a loan for some sort of business venture that is going to make you money do it. However getting a loan to buy something you just want that isn’t absolutely essential is about as stupid as it gets. Ever notice how the banks have the nicest and largest buildings in town? It’s because of schmucks who can’t wait to have stuff and finance it instead of saving up and waiting.
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Re: what type of loan?
[Re: bigbob_ftw]
#9026253
03/29/24 10:10 AM
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Joined: Apr 2009
Posts: 5,564
Slow Drifter
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I remodeled a bathroom last June. I used a large statewide company and got 0% for a year. Already paid it off. That's like free money.
"I have no idea what WW-III will be fought with, but WW-IV will be fought with sticks and stones." A. Einstein
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Re: what type of loan?
[Re: bigbob_ftw]
#9026261
03/29/24 10:46 AM
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Joined: Feb 2014
Posts: 1,054
Bandit 200 XP
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Take a 401 k loan not a withdraw from your savings , you pay yourself back .
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Re: what type of loan?
[Re: Bandit 200 XP]
#9026398
03/29/24 03:42 PM
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Joined: Sep 2012
Posts: 16,061
Jimbo1
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Take a 401 k loan not a withdraw from your savings , you pay yourself back . Viable option.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: what type of loan?
[Re: Jimbo1]
#9026424
03/29/24 04:42 PM
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Joined: Jul 2008
Posts: 33,450
bigbob_ftw
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Big Sprocket Bob
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Take a 401 k loan not a withdraw from your savings , you pay yourself back . Viable option. We have profit sharing. Not a possibility.
Ultra MAGA '24.
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