Yesterday I closed my Home Equity Line of Credit of $30,000. It's a very streamlined process that only takes 20 minutes on the phone and a visit to my credit union's branch to sign a few documents. As expected, there is no closing fee of this line of credit, and the rate is Prime + 0.50%. Yes, there is $25 annual fee, but at $2/month it is a nice price to pay for liquidity insurance.
With the access to $30,000 now, it is now time to think about how to creatively leverage my capital structure. I am exploring some ideas like stable value funds or bank loan funds. I can see some opportunities of doing carry trade, but the margin is too low (like 2-3% annually) and there is little room for error. I may probably spend more time in research before taking any actions.
(By the way, my credit limit on the Visa with the credit union was also boosted from $5,000 to $13,000, bringing my total credit limit from credit cards to $68,200.)
Topic Sponsors:
Find Out Your Home’s Value. Free Evaluation, It’s Easy! Click here.
