Too soon for a home equity loan? or similar loan?
Answers:
You can typically borrow up to 80% of your equity. If you don't have much of equity, then there will be no point. The only way to be sure is to contact your bank/credit_union and inquire.
I get fliers in my mail box all the time for banks just begging me to take out a heloc. The bank will probably jump at the opportunity to make more money off of your debt. Try this.
If the roof doesn't need to be replaced today or tommorrow but rather you are taking a precaution just wait.
Take that money that you would have paid as a payment on your heloc(Home Equity Line Of Credit) and stash it into a savings account. Take this time to get several estimates. Figure out what kind of shingles that you want. Find out just about what the entire job will cost you. Once you are well informed and have the cash on hand then you can start to make deals. When you borrow the money you will be tempted to not take the time to get a deal on your roof. When you have the cash on hand then you can keep an eye out for deals on shingles. Find out how many squares(roofer's jibberish for shingle area) you need. Maybe you can find them on the cheap while you are saving and can pounce on the deal.
If you borrow the money you will pay full retail price that day. If you have the cash and you can wait maybe you can work out a deal to have the roofer do the job at a discount in his slow period. Or maybe the roofer will give you a deal or do your job first because he knows that he will get paid cash on the completion of the job.
These kinds of ideas work great when it comes to buying anything. I bought my car like this. 3000 under market. My dryer like this 200 under market. I had the cash on hand and was looking for the deal. If I had financed my car then I would have bought a 7000 dollar car and paid interest. Probably paying 9000 dollars for the same car got for 4000.
Most important do you really want to put your home more at risk by borrowing money on it. Every dollar that you owe puts more risk in your life. Normal is credit. Normal is broke. Be weird pay cash.
Well the equity part might be a problem but I paid cash for a house in 2004 and took out a home equity loan 7 months later. They said there is usually a 6 month wait at least at Discover Home Loans.
You can borrow up to a specific limit during the duration of the loan. The time limit is generally decided by the institution lending the amount. Within that time frame you can borrow money as per your necessity to pay for things that you require. As you go about repaying the principal, your credit revolves, allowing you to borrow again if necessary. Credit line is more flexible than a term home equity loan.
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