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re: Secured LOCs: What is the point?
Posted on 2/12/16 at 4:02 pm to stevengtiger
Posted on 2/12/16 at 4:02 pm to stevengtiger
You proved my point, most of the posts seemed to be answering the subject line as opposed to the OP.
I am NOT speaking of HELOCs which allow you to tap an otherwise illiquid asset cheaply.
Or even portfolio lines of credit where one could be betting that the growth of the assets could outstrip or downsize the cost of interest.
I'm talking having x money in the bank, and using that cash as collateral for a loan for a lesser amount of cash than the savings account balance.
In essence, paying a loan to use dollar bills you already have in the bank and could use with no sale or loan needed. It's already there.
I was just wondering if there was some other reason than credit building or forced discipline. It seems like there isn't.
I am NOT speaking of HELOCs which allow you to tap an otherwise illiquid asset cheaply.
Or even portfolio lines of credit where one could be betting that the growth of the assets could outstrip or downsize the cost of interest.
I'm talking having x money in the bank, and using that cash as collateral for a loan for a lesser amount of cash than the savings account balance.
In essence, paying a loan to use dollar bills you already have in the bank and could use with no sale or loan needed. It's already there.
I was just wondering if there was some other reason than credit building or forced discipline. It seems like there isn't.
2
Posted on 2/12/16 at 8:42 pm to Volvagia
Nope you're right....
On to the next subject.
On to the next subject.
This post was edited on 2/12/16 at 9:49 pm
Posted on 2/13/16 at 3:48 pm to Volvagia
It's really not that complicated. There may be a situation where you want to keep yourself liquid in case future unexpected situations occur that require the cash, but you also have access to a cheap interest rate loan.
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