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Forum
-> Household Management
-> Finances
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amother
OP
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 Sun, Nov 19 2023, 1:40 pm
Whats the advantage of having a "Line of Credit" on your house, in case of fleeing from US in bad times?
Someone very involved in finance said thats what hes doing. I havent beemn able to ask him what the advantages are.
How would a "Line of Credit" help in any way, with getting money quicker, or less losses in case of political trouble?
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boysrus
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Sun, Nov 19 2023, 2:55 pm
if you have a line of credit for lets say $15k on your house, then in theory you can write yourself a check from that line of credit account, deposit it into your regular bank account and then you can withdraw that $15k in cash.
so I guess it just gives you available cash.
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amother
Tiffanyblue
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Sun, Nov 19 2023, 3:22 pm
Because you don't need to apply, you have the line of credit already available.
It's a prepper mentality.
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amother
OP
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Sun, Nov 19 2023, 3:40 pm
| amother Tiffanyblue wrote: | Because you don't need to apply, you have the line of credit already available.
It's a prepper mentality. |
Any downside to it?
Dos anyone know anyone who has taken out a line of credit, strictly as preparation, because of current events?
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amother
DarkOrange
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Sun, Nov 19 2023, 3:50 pm
| amother OP wrote: | Any downside to it?
Dos anyone know anyone who has taken out a line of credit, strictly as preparation, because of current events? |
My financial planner recommends having it either way. Nothing to do with fleeing the country.
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amother
OP
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Sun, Nov 19 2023, 3:52 pm
| amother DarkOrange wrote: | | My financial planner recommends having it either way. Nothing to do with fleeing the country. |
Whats the benefit of having it done, when theres no rush to flee? How long does it take to get?
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listenhere
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Sun, Nov 19 2023, 4:01 pm
| amother OP wrote: | | Whats the benefit of having it done, when theres no rush to flee? How long does it take to get? |
It’s an approval process, shouldn’t take long but no guarantees. In case you need it you don’t want to have to start scrambling then for a bank, favourable rates, appraisal, etc.
It’s like anything you may need to take care of. No big deal unless you’re in a rush and then it’s a gigantic headache.
Most of these LOC’s have a yearly maintenance fee, which is one reason you may want to delay.
Another reason is that if you have available cash it may get used up if you’re not super careful.
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amother
OP
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Sun, Nov 19 2023, 4:53 pm
Anyone aware of a bank with good rates?
Whats the average rate?
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amother
Bellflower
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Sun, Nov 19 2023, 6:22 pm
| amother OP wrote: | Any downside to it?
Dos anyone know anyone who has taken out a line of credit, strictly as preparation, because of current events? |
We have a heloc just to have. In the past we’ve used it for a business loan as well as to buy our cars and we paid ourselves back. The interest was lower than the car financing option.
We didn’t take it out specifically for bad times but it makes sense now that you mention it
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amother
Bellflower
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Sun, Nov 19 2023, 6:23 pm
| amother OP wrote: | Anyone aware of a bank with good rates?
Whats the average rate? |
I think rates are bad these days
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amother
Pumpkin
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Sun, Nov 19 2023, 6:24 pm
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Why don’t people do a LOC instead of a mortgage if they own a house and are buying another before selling?
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STovah
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Sun, Nov 19 2023, 6:28 pm
| amother Pumpkin wrote: | | Why don’t people do a LOC instead of a mortgage if they own a house and are buying another before selling? |
People do. If you have enough equity in the original house people definitely draw on a LOC instead of a bridge loan.
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STovah
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Sun, Nov 19 2023, 6:31 pm
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During COVID banks weren’t offering helocs so we were without a line once ours expired. Once banks started offering them again we opened another one. It’s the kind of thing you get when you don’t need it because sometimes when you do need it it’s not available.
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