How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds
Ask a Finance question
Type Your Finance Question Here...
characters left:
2 Financial Professionals are Online Now

Line of Credit Questions

There are various forms available for lines of credit. Individuals involved in any aspects of a line of credit have had many questions throughout the process. Uncertainties of what the advantages of a home equity line of credit are or if a surviving spouse can still draw funds from a line of credit after their spouse dies often lead to questions like the ones answered below by Experts.

Should I pay off the line of credit balance or credit card balance first?

Case Details: Line of credit is $28,000 with an interest rate of 5.75%. Credit card is $17,000 with an interest rate of 9.96%. 

If you would like to save the most money then you should pay off the credit card balance first. You would be saving 4.21% in interest per year by paying of the credit card. The line of credit has a smaller interest rate therefor hold on to that one.

Is getting a home equity line of credit a good idea?

Obtaining a home equity line of credit can be a good idea. Home equity lines of credit can in some case fare better than refinancing the main mortgage. An advantage to getting an equity line of credit instead of refinancing is a low to no closing cost. You can also utilize a line of credit similar to a credit card, as you pay down the balance you can reuse the money again. Interest payments on a line of credit are generally tax deductible just like with a regular mortgage. The main disadvantage to getting an equity line of credit is that you are borrowing against the equity in your home. If you cannot make the payments on the equity line of credit you home is in jeopardy of foreclosure.

Should I pay down the mortgage or equity line of credit to qualify for a home refinance?

Case Details: Both the mortgage equity line of credit equal more than the house is worth. Both have low interest rates, but the Line of Credit (LOC) has a lower one. 

Even though the Home Equity Line of Credit (HELOC) may have a lower interest rate it is typically wiser to pay it down for good chances for a refinance. The HELOC being paid down will free up more equity in your home as well as reduce the monthly drain on your cash flow. Freeing up more equity in your home will make qualifying for the refinance a bit sooner and quite possible allow for a lower interest rate on your mortgage.

If an individual has been denied both home equity line of credit and refinance how can they receive a refinance?

Just because the individual has been turned down by the more traditional routes does not mean that all hope is lost. Housing Urban Development (HUD) has a program called 203(k) that is geared toward home improvements that will allow the individual to stay in their current home. There are many lenders that work with individuals with the HUD program. These lenders know that the HUD 203(K) program is typically for those that have a hardship that’s why it is a different route than someone’s traditional lenders with whom the individual was denied.

If a spouse died, can an the surviving spouse draw additional funds on their line of credit even though their spouse is no longer living?

Case Details: The line of credit on the house is not fully drawn on. 

If married individuals jointly sign a line of credit on their house and one of them dies then the surviving spouse would still have access to that line of credit. The surviving spouse being on that line of credit before the death of their spouse can still draw funds from the line of credit account.

Gathering good information and having a clear understanding about a line of credit can help when faced with circumstances regarding lines of credit. Experts can help answer if it is more beneficial to pay off a line a credit versus a credit card or if a surviving spouse can still draw on a home equity line of credit. Get the answers fast and affordably by asking an Expert.

Ask a Finance question
Type Your Finance Question Here...
characters left:
2 Financial Professionals are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21184
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21184
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18393
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8491
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3848
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3384
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3299
    DVM, Emergency Veterinarian, BS (Physiology)
 
 
 

Recent Line of Credit Questions

  • Hi, I would like to transfer some of my credit card balances

    Hi,

    I would like to transfer some of my credit card balances but am unsure as to what the best approach might be. I currently have 4 credit cards which I've listed below for your reference.

    1) Discover It
    2) Chase Sapphire Preferred
    3) Amazon Visa (issued by Chase)
    4) Chase Freedom

    I would like to transfer approximately $5,000 worth of balances and unfortunately, transferring them to my Discover It account which currently has a 0% APR on balance transfers is not an option (as it would nearly max out the account which I obviously cannot allow).

    Thus, I'm strongly considering applying for one more credit card account for purposes of transferring these balances. The first card that struck me was the Chase slate card but unfortunately, I cannot transfer balances from one Chase account to another.

    Having said that, what are my other options? I've done my research and am aware of some options (i.e. Citi Diamond Preferred Card, Citi Simplicity Card, Blue Cash Everyday Card from American Express, etc.).

    While they are highly promoted as credit cards beneficial for balance transfers, I know there are many other cards that offer introductory 0% APR on balances transfers too. To be honest, the only card that seems solely for the use of balance transfers is the Chase Slate card which I unfortunately can't use.

    Having said all that, could you perhaps propose what you consider to be some of my best options? Please note that aside from having a 0% introductory APR on balance transfers for either 15 or 18 months, I'm really looking for an account that will provide me with a higher line of credit.

    For example, I was just given $10,000 initially on my Chase Sapphire Preferred card but only $2,000 on my Chase Freedom account at first. Similarly, I was initially given a $10,000 line of credit by Discover and that was the first card I applied for after graduating from school!

    I know there's no way to know what I'd be given upon applying for any given account, but I imagine that some cards have to be well known for giving out higher lines of credit in comparison to others.

    My credit score is very good so please consider that when offering your recommendations.

    Thanks in advance!!
  • My mother is concerned about becoming impoverished from my

    My mother is concerned about becoming impoverished from my stepfather needing LTC, so she needs to spend down without completely depleting her retirement and savings. Can she take a personal line of credit now, help him into a ltc facility in the next month or so, and then pay off the line of credit?
  • Hi Megan. I would like to know if it is possible to have a

    Hi Megan. I would like to know if it is possible to have a line of credit from a family member or friend?

    The situation is, my parents are interested in having an account of their names, and then let me have their ATM card to withdraw whatever I want from that account. They are foreign citizens living overseas. I am an U.S. citizen living in the U.S.

    We do not want the withdraws be considered as my income or a gift. I was thinking about using promissory notes to make the withdraws my debts/loans. But, I do not like having to write a promissory note for every withdraw.

    So, does it work if my parents give me a line of credit?

    Either with the promissory note or a line of credit, will there be any issues with IRS? Or, do you have other suggestions as to avoid taxes when my parents want to give/loan me money?
< Last | Next >