UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: Dwdonhoff Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 128129  
Subject: Re: Rates for close to 100% LTV Home Equity loan Date: 1/14/2002 12:05 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi Rowayton,

Dave, I wonder if you would mind explaining why you think HELOC's are the deal of the era.

Not at all!

A) For the first time in the history of institutional financing you are able to place a 2nd position loan behind a 1st with a potentially LOWER rate on the 2nd,

B) The HELOCs are currntly extremely low (starting rates as low as 3 3/4% right now... and if Greenie drops more as rumoured, then ???)

C) The HELOCs are variable, but track with the Federal Prime Rate. Due to the current state of the big picture of the economy (hungover & sluggish, but not crushed) and the understanding of the management style of Mr. Greenspan, who, arguably, holds (much) more power than the U.S. President... it would appear to me (and many others in finance) that the Fed is likely to hold the Prime low for at least a few years, and IF they raise it, will be doing so grudgingly.

Because of this, taking a HELOC is a short-to-midterm aggressive strategy that provides very cheap capital with quite reasonable interest risk.

Dave Donhoff
Mortgage Fool
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.