HELOC or Home Equity

I personally prefer a HELOC, because: - you only pay interest on what you're actually borrowing at any given time - as you pay down the balance during the draw period, the required monthly payment is lower (loan payments are fixed for the life of the loan) - if you need to pull money out again, the remainder of your balance is available to you

Are you saying your just spent your home repair fund / savings on a new HVAC ? How dire is the roof situation? Can it be patched while u save up? How long would it take to save up the funds to do a full roof?

Do you mind sharing the lender?

Suffolk Credit Union. https://www.suffolkcu.org/

How do you think you’re going to find a low interest loan without using your house for collateral?

Wells Fargo has a card 21 months no interest.

A house as a colateral for $20k-$30k loan? That’s a really crazy bad decision, i would rather save and that why you go to local credit union.

Yes that's normal

Both risk your home for a relatively small amount of cash. I opened a zero interest credit card with a spend bonus when I needed a roof and paid it off over 12 months.

Some banks allow you to lock your existing balance an interest rate. So if you have $100k HELOC and you use $20k for your roof, you can lock that existing amount to today's interest rates. I think it's a pretty common option.

Probably depends on the rest of your situation. If you have sufficient income a HELOC is probably best because you can plunge it down with excess cash even if that means you need to draw on it a bit again a month or two later. That’s how I use mine at least.

Typically someone with a paid off house, has additional savings elsewhere? No other money to pull from? If you take a HE Loan for this, what happens when you gotta replace the HVAC system? A new bigger HELOAN? or now a HELOC on top of the HE LOAN?

For home improvements, HELOC is a better option because you don’t always know the exact cost of the project. Once the project is done, you can decide to convert it to a Home Equity loan or do a cash out refinance if the rates favor that.

By evaluating details. Examples: Interest rate. Fees. Cash flow.

HELOC We just closed on one. Introductory rate of 5.44% for 15 months. No fees or closing costs. After 15 months the rate is just prime.

I choose based on interest rates. Although a 5 year home equity loan sounds better to me.

None. Try to get a low interest loan from a local bank or credit union and then save for next time in a hysa or stocks