C
Chico
Guest
I have been looking into this HELOC (Home Equity Line Of Credit)plan. Which is: You open a HELOC, which is a revolving account that comes with a debit card and a book of checks. Say your home is worth 80,000 and your current balance is 75,000. Well, you can get a HELOC of 5,000. You dont spend this money. You just leave it where it is. This is where it gets interesting. When you get paid you start using this HELOC account as your checking account. Say you get paid 2500 every 2 wks. When you make your deposit of 2500. Your daily periodic balance that you will be charged interest on is going to be 72,500. As you pay your bills and living expences for that 2 wk period you may only have 500 dollars of the 2500 you put in. This will leave you principle at 74,500 for the remainder of the 14 days of intrst . You get paid again. Put another 2500 in this account. You again leave 500 in, and you make a house payment of 700. Which has been in the account the entire time anyway. Will this work?