Yeah, def the drawback is the potential for the rate to go up. But again, the real purpose of this is to use it for short term only. Once I sell the exchange property I will more than likely take out a 1st with the replacement place that I buy with all cash. Sweetie wants her moola back… (Sweetie better not charge me interest…)
Wow. Any pointers to this US Bank HELOC? This is what I found in the fine print:
- Home Equity Line of Credit - 1.99% Introductory Annual Percentage Rate (APR) is available on Home Equity Lines of Credit with an 80% loan-to-value (LTV) or less. The Introductory Interest Rate will be fixed at 1.99% during the 6-month Introductory Period. A higher introductory rate will apply for an LTV above 80%. Offer is available for new applications submitted from September 9 - November 17, 2017. After the 6-month introductory period: the APR is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal.
As of September 9, 2017, the variable rate for Home Equity Lines of Credit ranged from 3.79% APR to 8.20% APR. Higher rates may apply due to an increase in the Prime Rate, a credit limit below $100,000, an LTV above 70%, and/or a credit score less than 730. A U.S. Bank Consumer Silver, Gold, or Platinum Checking Package account is required to receive the lowest rate, but is not required for loan approval. The rate will not vary above 18% APR, or applicable state law, or below 3.25% APR. Choosing an interest-only repayment may cause your monthly payment to increase, possibly substantially, once your credit line transitions into the repayment period. Repayment options may vary based on credit qualifications. Interest only repayment may be unavailable. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Credit Line may be reduced or additional extensions of credit limited if certain circumstances occur. Property insurance is required. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation. Other restrictions may apply. Mortgage and Home Equity products offered by U.S. Bank National Association. Deposit Products are offered through U.S. Bank National Association. Customer pays no closing costs, except escrow-related funding costs. An annual fee of up to $90 may apply after the first year and is waived with a U.S. Bank Consumer Platinum Checking Package. The Consumer Pricing Information brochure lists fees, terms, and conditions that apply to U.S. Bank Consumer Checking Package accounts and can be obtained by visiting a branch or calling 800.872.2657.
According to this, the 1.99% APR will only be applicable for the first 6 months, and then it’s 3.25~18% (or 3.79% to 8.20% according to Sept stats).
Yeah, but that is why 6 months is the max I was planning for anyway… Come on, there has to be some catch right? But no cost to open it and hold the line for your holster in case you ever need it. Sure, rate may be higher but you never know if you need emergency cash or if that magic condo at 199K comes up again…
I would buy a vacation condo in South Lake Tahoe… we are having the biggest building boom in 45 years.
The condo can pay for itself and still allow you a few weeks vacation a year . Plus you can retire here after selling your BA place with a huge profit… There is huge opportunity here. The millennium generation has rediscovered Tahoe and it is being reinvigorated by a new migration of lifestyle seeking outdoor enthusiasts…
Two new shopping centers… Many new restaurants and bars… Beautification of 50. Several new high end condo projects. The new hard Rock casino… New hotel at Edgewood.A new fancy mtn style McDonald’s. a Chinese investor bought the famous hole in the ground for $45m for a new hotel or condo development… Big money has placed several bets in this town . I am just riding the wave.
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Ah got it. So the 6 months clock basically starts ticking as soon as you open the account, but you can hold the line without pulling the trigger until you need it. Then when you do pull the trigger, you’re subject to the APR at that point in time, correct?
Sounds like a good option. Learning so many things every day here. 
I have a place coming up for rent… 
This is why I need to see your deals! Looking forward to Saturday 
I’d be interested, but remote managing seems worrisome to me. Any areas you recommend, I don’t know the Tahoe area. Do you have good PMs or you just do all yourself these days @Elt1?
I manage my Tahoe properties… We can manage yours too. Or I can recommend several local managers…
I’ll PM you.
Congrats on buying! That was the first step. When this house is paid off or paid down, you will eventually be able to buy another one.