Why would you pay to borrow money that you already have?
I think usually these are good advice but to me my savings is mostly my what if I lose my job money. If you lose your job will you be able to get the HELOC loan?Taking from savings is cheaper and you still have the HELOC in case of an emergency.
He said he already has a HELOC at prime. Once it's established, it's available even if he loses his job.Why would you pay to borrow money that you already have?I think usually these are good advice but to me my savings is mostly my what if I lose my job money. If you lose your job will you be able to get the HELOC loan?Taking from savings is cheaper and you still have the HELOC in case of an emergency.
He already has one.Why would you pay to borrow money that you already have?I think usually these are good advice but to me my savings is mostly my what if I lose my job money. If you lose your job will you be able to get the HELOC loan?Taking from savings is cheaper and you still have the HELOC in case of an emergency.
Probably costs about 1/3rd the costs.He would still have to pay for the materials.Do the work yourself.
Maybe he doesnt know how. Its his roof.....that is something you want a pro to fixProbably costs about 1/3rd the costs.He would still have to pay for the materials.Do the work yourself.
Because cash flow is king. Because rates are ridiculously low. I can't think of a better time to use a bit of leverage.Why would you pay to borrow money that you already have?
He can have the cash if he needs it, that's the point. So unless his savings account is earning close to prime (lol), then it makes no sense.As someone pointed out, if he can get a credit card that won't charge interest for a period of time, then that's what I would do. But a HELOC is like cash in his pocket already.Sand said:Because cash flow is king. Because rates are ridiculously low. I can't think of a better time to use a bit of leverage.gianmarco said:Why would you pay to borrow money that you already have?
So, basically, use cash if you hate money.
yep that's the reason I have the heloc. Backup needed cash. No real debt except sons college and mortgage.I did finance my heater ac furnace because it was 0 percentHe can have the cash if he needs it, that's the point. So unless his savings account is earning close to prime (lol), then it makes no sense.As someone pointed out, if he can get a credit card that won't charge interest for a period of time, then that's what I would do. But a HELOC is like cash in his pocket already.Sand said:Because cash flow is king. Because rates are ridiculously low. I can't think of a better time to use a bit of leverage.gianmarco said:Why would you pay to borrow money that you already have?
So, basically, use cash if you hate money.
So hypothetical, he has $100,000.
$50,000 HELOC
$50,000 savings.
Both are immediately accessible. Roof costs $50,000. Why would you use the $50,000 where you pay 4+% interest when you can use the $50,000 that you pay 0.1% interest (the loss of his likely savings account rate)?
If something later comes up that he needs $50,000, he can still pull it from the HELOC instantly.
If its just a layer on top of an existing layer, I'd definitely do myself as you already have the existing layer as a guide. Complete tear down, I'd probably contract out.jon_mx said:Probably costs about 1/3rd the costs.trogg78 said:He would still have to pay for the materials.jon_mx said:Do the work yourself.
Hail storms.Side note... But what's up with these roofers who say you can get it done with zero cash out of pocket by way of homeowners insurance? First I heard of it sounded shady, but some pretty reputable shops seem to do it around here.
I can do a lot but when it comes to stuff like roofs etc, I dont get cute. I would do research and get the best possible roofer I can find. I have to get a new one next year and that is going to suck. The price range is pretty extreme.MC Gas Money said:Maybe he doesnt know how. Its his roof.....that is something you want a pro to fixjon_mx said:Probably costs about 1/3rd the costs.trogg78 said:He would still have to pay for the materials.jon_mx said:Do the work yourself.
In easten NC I had a quote of $16000 for a completely new roof. This is from a reputable guy in town who does solid work and warrantys everything. He says he can be in and out in a week if the weather is good.What are roofs going for these days?
. You re-roofing the Taj Mahal?In easten NC I had a quote of $16000 for a completely new roof. This is from a reputable guy in town who does solid work and warrantys everything. He says he can be in and out in a week if the weather is good.I had a quote of $5000 for some minor work but that would just be patchwork and at some point I would still have to do a complete overall.What are roofs going for these days?
Oh and I have to replace a HVAC unit before next winter. Yeah me
not sure but my guys a friend of the family so its lower than normal peopleWhat are roofs going for these days?
its going to be a tear off on my lower roof cuz I want to replace the flashing and the top roof is just going to be a layoverIf its just a layer on top of an existing layer, I'd definitely do myself as you already have the existing layer as a guide. Complete tear down, I'd probably contract out.jon_mx said:Probably costs about 1/3rd the costs.trogg78 said:He would still have to pay for the materials.jon_mx said:Do the work yourself.
some advice might be to get a bigger cushion, sounds like you are running a bit tightbelljr said:So I am in the market for a new roof. I have enough in savings to cover the cost but that would leave very little left.
Would you pay it that way or use a HELOC, which I already have at prime. The interest is tax deductible and pay it off over a year or 2.
Thoughts.
Thread is done.....paying interest when don't need to is insane.gianmarco said:Why would you pay to borrow money that you already have?
how much should a 4000sq ft house with one side steep pitch cost?.You re-roofing the Taj Mahal?In easten NC I had a quote of $16000 for a completely new roof. This is from a reputable guy in town who does solid work and warrantys everything. He says he can be in and out in a week if the weather is good.I had a quote of $5000 for some minor work but that would just be patchwork and at some point I would still have to do a complete overall.What are roofs going for these days?
Oh and I have to replace a HVAC unit before next winter. Yeah me
FBG Roofhow much should a 4000sq ft house with one side steep pitch cost?.You re-roofing the Taj Mahal?In easten NC I had a quote of $16000 for a completely new roof. This is from a reputable guy in town who does solid work and warrantys everything. He says he can be in and out in a week if the weather is good.I had a quote of $5000 for some minor work but that would just be patchwork and at some point I would still have to do a complete overall.What are roofs going for these days?
Oh and I have to replace a HVAC unit before next winter. Yeah me
Ok you pay my sons tuition this year. Tia.thanks for your concern. I have no outstanding bills. Paying college in cash has things tightersome advice might be to get a bigger cushion, sounds like you are running a bit tightbelljr said:So I am in the market for a new roof. I have enough in savings to cover the cost but that would leave very little left.
Would you pay it that way or use a HELOC, which I already have at prime. The interest is tax deductible and pay it off over a year or 2.
Thoughts.
I didnt realize people paid for roofs out of pocket, at least in the midwest.Hail storms.Side note... But what's up with these roofers who say you can get it done with zero cash out of pocket by way of homeowners insurance? First I heard of it sounded shady, but some pretty reputable shops seem to do it around here.
Yes, because there is nothing out there that can do better than .1%.He can have the cash if he needs it, that's the point. So unless his savings account is earning close to prime (lol), then it makes no sense.As someone pointed out, if he can get a credit card that won't charge interest for a period of time, then that's what I would do. But a HELOC is like cash in his pocket already.Sand said:Because cash flow is king. Because rates are ridiculously low. I can't think of a better time to use a bit of leverage.gianmarco said:Why would you pay to borrow money that you already have?
So, basically, use cash if you hate money.
So hypothetical, he has $100,000.
$50,000 HELOC
$50,000 savings.
Both are immediately accessible. Roof costs $50,000. Why would you use the $50,000 where you pay 4+% interest when you can use the $50,000 that you pay 0.1% interest (the loss of his likely savings account rate)?
If something later comes up that he needs $50,000, he can still pull it from the HELOC instantly.
That's a completely different story. Depending on how much and what he might need it for, keeping some money in a safe, low interest account makes sense.Yes, because there is nothing out there that can do better than .1%.He can have the cash if he needs it, that's the point. So unless his savings account is earning close to prime (lol), then it makes no sense.As someone pointed out, if he can get a credit card that won't charge interest for a period of time, then that's what I would do. But a HELOC is like cash in his pocket already.Sand said:Because cash flow is king. Because rates are ridiculously low. I can't think of a better time to use a bit of leverage.gianmarco said:Why would you pay to borrow money that you already have?
So, basically, use cash if you hate money.
So hypothetical, he has $100,000.
$50,000 HELOC
$50,000 savings.
Both are immediately accessible. Roof costs $50,000. Why would you use the $50,000 where you pay 4+% interest when you can use the $50,000 that you pay 0.1% interest (the loss of his likely savings account rate)?
If something later comes up that he needs $50,000, he can still pull it from the HELOC instantly.
I get the impression you took that personally, but you shouldn't. There may be good reasons you had to draw down your usual emerg fund but the point remains, in the future (maybe post college) consider returning it to a higher point.Ok you pay my sons tuition this year. Tia.thanks for your concern. I have no outstanding bills. Paying college in cash has things tightersome advice might be to get a bigger cushion, sounds like you are running a bit tightbelljr said:So I am in the market for a new roof. I have enough in savings to cover the cost but that would leave very little left.
Would you pay it that way or use a HELOC, which I already have at prime. The interest is tax deductible and pay it off over a year or 2.
Thoughts.
This.I didnt realize people paid for roofs out of pocket, at least in the midwest.Hail storms.Side note... But what's up with these roofers who say you can get it done with zero cash out of pocket by way of homeowners insurance? First I heard of it sounded shady, but some pretty reputable shops seem to do it around here.
this is way different than you described above....now it makes even less sense to use the heloc....No not personal. I have plenty of savings in various accounts but not liquid.. I have about 6 to 10 months currently and hate being below that which I would be.
ya, I was trying to picture where someone would keep their non-retirement savings that was not liquid. Krugerrands?this is way different than you described above....now it makes even less sense to use the heloc....No not personal. I have plenty of savings in various accounts but not liquid.. I have about 6 to 10 months currently and hate being below that which I would be.