@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
I've got a better deal for you at Bank of America!
"0% Intro APR† for 15 billing cycles for purchases . After the intro APR offer ends a Variable APR that's currently 18.24-28.24% will apply."
The best one I got a while back was 0% intrest for 21 months from Chase
The credit card cash advances typically cost at least 5%.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
They don't take that long or cost that much around here. Last one we got the loan officer did a drive by appraisal.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
With this special transfer it allowed me to transfer the money directly into my bank account so I could use just like a cash advance but with the 0% interest and just the 3% transfer fee
Couldn't and didn't pass it up
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
They don't take that long or cost that much around here. Last one we got the loan officer did a drive by appraisal.
Even in NY, they don't cost much. The bank sent the appraiser at their cost and the set up fee was under $100.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
While I've never done one and never will, it seems to me that a simple balance transfer from one CC to another was a fixed fee of $40, but that might be if you have more than one card from the same bank and transfer between them. Best not to carry a balance. But if you're talking $100K I would be looking in the HELOC direction if I had that kind of equity in my home.
I think my bank still has what I refer to as a high roller account where if you deposit $25K into a certain kind of account that you get various privileges like free wire transfers, free cashiers checks, etc. and you could probably work out a favorable personal loan in jig time.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
While I've never done one and never will, it seems to me that a simple balance transfer from one CC to another was a fixed fee of $40, but that might be if you have more than one card from the same bank and transfer between them. Best not to carry a balance. But if you're talking $100K I would be looking in the HELOC direction if I had that kind of equity in my home.
I think my bank still has what I refer to as a high roller account where if you deposit $25K into a certain kind of account that you get various privileges like free wire transfers, free cashiers checks, etc. and you could probably work out a favorable personal loan in jig time.
>
>
I certainly agree with what you said here and perhaps when I first mentioned the C/C option I was relating to my own personal financial situation more than I should have.
To try and better explain why a HELOC( or other equity line) tied to my house is not the direction I personally would pursue, see additional details. ( This is my personal decision and is NOT meant to infer this is better for anyone else)
>
First, I have no existing mortgage on my home. So I would need a Deed of Trust, appraisal, etc., which definitely involves an attorney in my state. Perhaps the drive by appraisal is the cheapest part of this whole process. My experience with attorneys are usually more costly. Just two weeks ago I paid $600 for one to draft a standard deed for a particular RE sale.
For a deed of trust, the bank will also require a title search, and title insurance. All this is to say that I couldn’t get it all done for less than $1200-1500, minimum, and probably much more than this.
To add further expense, I would need an updated survey, required by the bank when an existing survey is more than 12 months old.
Someone mentioned $100, for appraisal and setup cost. Good luck!
>
So in my case (and only my case) a promotional C/C offer is very viable if I was unable to unwind a particular investment decision due to potential tax or other negative consequences to myself.
I hope this better explains why I suggested this option in the first place.
>
Just my .02 cents.
A dealer told me about a friend of his running a rare baseball card in an HA auction where he was told it could go over six figures. So he took out a big loan banking on the collectible going strong, but it ended up being "buried" in the auction without top billing. So the "six figure" estimate was off by orders of magnitude, as it brought only $8K.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
While I've never done one and never will, it seems to me that a simple balance transfer from one CC to another was a fixed fee of $40, but that might be if you have more than one card from the same bank and transfer between them. Best not to carry a balance. But if you're talking $100K I would be looking in the HELOC direction if I had that kind of equity in my home.
I think my bank still has what I refer to as a high roller account where if you deposit $25K into a certain kind of account that you get various privileges like free wire transfers, free cashiers checks, etc. and you could probably work out a favorable personal loan in jig time.
>
>
I certainly agree with what you said here and perhaps when I first mentioned the C/C option I was relating to my own personal financial situation more than I should have.
To try and better explain why a HELOC( or other equity line) tied to my house is not the direction I personally would pursue, see additional details. ( This is my personal decision and is NOT meant to infer this is better for anyone else)
>
First, I have no existing mortgage on my home. So I would need a Deed of Trust, appraisal, etc., which definitely involves an attorney in my state. Perhaps the drive by appraisal is the cheapest part of this whole process. My experience with attorneys are usually more costly. Just two weeks ago I paid $600 for one to draft a standard deed for a particular RE sale.
For a deed of trust, the bank will also require a title search, and title insurance. All this is to say that I couldn’t get it all done for less than $1200-1500, minimum, and probably much more than this.
To add further expense, I would need an updated survey, required by the bank when an existing survey is more than 12 months old.
Someone mentioned $100, for appraisal and setup cost. Good luck!
>
So in my case (and only my case) a promotional C/C offer is very viable if I was unable to unwind a particular investment decision due to potential tax or other negative consequences to myself.
I hope this better explains why I suggested this option in the first place.
>
Just my .02 cents.
You don't have ANY documentation to present that shows that you have title to or own your home? Even if you bought it for cash or paid off a mortgage you must have an abstract or deed showing that you own the property. A property search on a site like Beacon-Schneider would show you as the owner. All the bank cares about is any encumbrances which might affect their ability to sell the property should it come down to that.
A HELOC may not be for everyone, but it can be an instant source of cheap money if needed. A few clicks of the mouse was all I needed to have funds in my checking account. Like any other credit line DON'T borrow what you can't pay back in a reasonable amount of time.
I can't believe all of these people feeling the need to educate someone contemplating a 6 figure coin on how to manage his money. Clearly someone in that position has the acumen to make prudent financial decisions. Debt is a tool to be used to achieve goals, such as your house is under contract to sell and you want to use those funds but it doesn't close for 2 months and this pop 1 coin comes available. You add in the cost of the financing and bid appropriately. Nothing wrong with that. OP is just trying to figure out the best debt instruments to use, he'd not here for a lecture on whether it's wise to take out debt to fund a hobby.
HELOCs in my state are generally free. Electronic appraisal can be sufficient especially if you're only going to f80% combined LTV there's so much margin they don't care .
I could see it for a month or two while waiting for a t bill to mature if the current interest rates would give me more of a haircut on that early sale than 1% a month would cost for financing. Or I would just call a close buddy and ask him to front me some cash for a short time, as he did back in 1998 when I needed 700K fast for a down payment to close a house in SF while my Paradise Valley place was closing slower, and his rate was 0, so that would be my first call.
Here in Utah I did a HELOC about 5 years ago, went through a credit union, (best rates) it cost me nothing to do it, filed out the paper work, they paid for everything
Had the money availanle in my account in a week
Like @ProofCollection said above Quoie:Debt is a tool to be used to achieve goals
What’s wrong with financing a coin when you’re cash poor at the time of purchase but will be able to payoff the loan in a few months?
Then wait to buy the coin in a few months!
The time to buy a rare coin is when you see it, not months after you see it.
“I believe in intuitions and inspirations. I sometimes feel that I am right. I do not know that I am. When two expeditions of scientists, financed by the Royal Academy, went forth to test my theory of relativity, I was convinced that their conclusions would tally with my hypothesis. I was not surprised when the eclipse of May 29, 1919, confirmed my intuitions. I would have been surprised if I had been wrong. I am enough of the artist to draw freely upon my imagination. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.” Albert Einstein- quoted in Saturday Evening Post interview (1929)
“Whoever is careless with the truth in small matters cannot be trusted with important matters.” For Einstein, honesty was fundamental. Attention to truth in small things reflected a person’s integrity on a larger scale.
@HillbillyCollector said:
Surprisingly, a C/C can be a reasonable financing source. I have three card that I never use except occasionally for cash advances. I can get the credit limit of these three and pay a promotional rate of 4% currently, for between 12-15 months.
Interest has to be paid in advance of the cash advances and monthly minimum payments equal a minimum of 1% per month on balance of the cards so actually it’s an effective rate in excess of 4%, but not by much.
>
If you don’t have a home equity loan it’s a very viable option, considering closing costs, etc. to set up such equity loan
>
The one thing is when the promotion is over, you better be ready to pay ‘em off as the interest on the carry over balance can easily exceed 25%!
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
While I've never done one and never will, it seems to me that a simple balance transfer from one CC to another was a fixed fee of $40, but that might be if you have more than one card from the same bank and transfer between them. Best not to carry a balance. But if you're talking $100K I would be looking in the HELOC direction if I had that kind of equity in my home.
I think my bank still has what I refer to as a high roller account where if you deposit $25K into a certain kind of account that you get various privileges like free wire transfers, free cashiers checks, etc. and you could probably work out a favorable personal loan in jig time.
>
>
I certainly agree with what you said here and perhaps when I first mentioned the C/C option I was relating to my own personal financial situation more than I should have.
To try and better explain why a HELOC( or other equity line) tied to my house is not the direction I personally would pursue, see additional details. ( This is my personal decision and is NOT meant to infer this is better for anyone else)
>
First, I have no existing mortgage on my home. So I would need a Deed of Trust, appraisal, etc., which definitely involves an attorney in my state. Perhaps the drive by appraisal is the cheapest part of this whole process. My experience with attorneys are usually more costly. Just two weeks ago I paid $600 for one to draft a standard deed for a particular RE sale.
For a deed of trust, the bank will also require a title search, and title insurance. All this is to say that I couldn’t get it all done for less than $1200-1500, minimum, and probably much more than this.
To add further expense, I would need an updated survey, required by the bank when an existing survey is more than 12 months old.
Someone mentioned $100, for appraisal and setup cost. Good luck!
>
So in my case (and only my case) a promotional C/C offer is very viable if I was unable to unwind a particular investment decision due to potential tax or other negative consequences to myself.
I hope this better explains why I suggested this option in the first place.
>
Just my .02 cents.
You don't have ANY documentation to present that shows that you have title to or own your home? Even if you bought it for cash or paid off a mortgage you must have an abstract or deed showing that you own the property. A property search on a site like Beacon-Schneider would show you as the owner. All the bank cares about is any encumbrances which might affect their ability to sell the property should it come down to that.
A HELOC may not be for everyone, but it can be an instant source of cheap money if needed. A few clicks of the mouse was all I needed to have funds in my checking account. Like any other credit line DON'T borrow what you can't pay back in a reasonable amount of time.
I agree with your comment, but with current rates, a HELOC isn’t going to be much cheaper than using HA financing if they came down a bit. Hell, I would offer financing at 9-10% with a Down payment equal to the BP, receive a secured and solid return, AND I get to play with a gorgeous circulated 1794 $1 w/cac for 6 months to a year? That almost sounds too good to be true! 😅
No one is borrowing money at less than 6-7% right now, minimum, and many are actually in the 8-9% range if your credit isn’t perfect. A HELOC still might be one of the best options for something like this, but I’d attempt to get a high limit credit card and put as big of a chuck on that as I can, but in order for HA to accept that you might need to cover a portion of the processing fee. Even so, that would be much cheaper than a HELOC and with so many cards that offer 1-2% cash back, it could help offset the processing fee.
@ProofCollection said:
I can't believe all of these people feeling the need to educate someone contemplating a 6 figure coin on how to manage his money. Clearly someone in that position has the acumen to make prudent financial decisions. Debt is a tool to be used to achieve goals, such as your house is under contract to sell and you want to use those funds but it doesn't close for 2 months and this pop 1 coin comes available. You add in the cost of the financing and bid appropriately. Nothing wrong with that. OP is just trying to figure out the best debt instruments to use, he'd not here for a lecture on whether it's wise to take out debt to fund a hobby.
HELOCs in my state are generally free. Electronic appraisal can be sufficient especially if you're only going to f80% combined LTV there's so much margin they don't care .
There are plenty of people who have money but aren't financially astute. I know a guy who had $750,000 in cash in his house and only $150k actually invested anywhere.
I also know a guy who has been financing coin purchases for 30 years. Great collection but barely enough savings to retire.
Comments
The transfer fee was 3%
It was a transfer balance
Mike
My Indians
Dansco Set
A home equity loan is just that, a loan. You apply and pay the fees and then you're given a check or whatever for the amount of the loan applied for. Once you pay it off the loan terminates.
Maybe you're thinking of a home equity line of credit or HELOC. You apply for and pay the fees and you get a set amount of credit that you can borrow against at any time and for anything. The loan is good for a period of time, usually 5 years and can be renewed. Rates are based on the prime rate and there may be a minimum.
>
>
You’re correct, I was thinking of the HELOC. But regardless of which instrument, any loan using the home as security usually involves an appraisal, attorney cost, bank origination fees, etc. Also the time required to complete this process likely will take several weeks.
>
>
While this option is also offered, it would involves ‘transferring’ a balance from another C/C to the card with the promotional rate. Since the auction houses charge an extra fee to pay with a C/C and then limit the purchase to maybe $2.5k, this option is problematic to me compared to the straight cash advance, even if the bank charges a bit more fee on setup.
@ProofCollection said:
So much for free money from the banks!
They don't take that long or cost that much around here. Last one we got the loan officer did a drive by appraisal.
With this special transfer it allowed me to transfer the money directly into my bank account so I could use just like a cash advance but with the 0% interest and just the 3% transfer fee
Couldn't and didn't pass it up
Mike
My Indians
Dansco Set
Even in NY, they don't cost much. The bank sent the appraiser at their cost and the set up fee was under $100.
Before paying six figures, I sure hope it stickered to ensure liquidity if you’re going into debt for it.
Calling and negotiating the rate would be the way to go if financing it.
While I've never done one and never will, it seems to me that a simple balance transfer from one CC to another was a fixed fee of $40, but that might be if you have more than one card from the same bank and transfer between them. Best not to carry a balance. But if you're talking $100K I would be looking in the HELOC direction if I had that kind of equity in my home.
I think my bank still has what I refer to as a high roller account where if you deposit $25K into a certain kind of account that you get various privileges like free wire transfers, free cashiers checks, etc. and you could probably work out a favorable personal loan in jig time.
The only purchase I've ever made that I didn't full pay at point of sale was my house. Suggest you do likewise.
"Seu cabra da peste,
"Sou Mangueira......."
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I certainly agree with what you said here and perhaps when I first mentioned the C/C option I was relating to my own personal financial situation more than I should have.
To try and better explain why a HELOC( or other equity line) tied to my house is not the direction I personally would pursue, see additional details. ( This is my personal decision and is NOT meant to infer this is better for anyone else)
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First, I have no existing mortgage on my home. So I would need a Deed of Trust, appraisal, etc., which definitely involves an attorney in my state. Perhaps the drive by appraisal is the cheapest part of this whole process. My experience with attorneys are usually more costly. Just two weeks ago I paid $600 for one to draft a standard deed for a particular RE sale.
For a deed of trust, the bank will also require a title search, and title insurance. All this is to say that I couldn’t get it all done for less than $1200-1500, minimum, and probably much more than this.
To add further expense, I would need an updated survey, required by the bank when an existing survey is more than 12 months old.
Someone mentioned $100, for appraisal and setup cost. Good luck!
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So in my case (and only my case) a promotional C/C offer is very viable if I was unable to unwind a particular investment decision due to potential tax or other negative consequences to myself.
I hope this better explains why I suggested this option in the first place.
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Just my .02 cents.
A dealer told me about a friend of his running a rare baseball card in an HA auction where he was told it could go over six figures. So he took out a big loan banking on the collectible going strong, but it ended up being "buried" in the auction without top billing. So the "six figure" estimate was off by orders of magnitude, as it brought only $8K.
You don't have ANY documentation to present that shows that you have title to or own your home? Even if you bought it for cash or paid off a mortgage you must have an abstract or deed showing that you own the property. A property search on a site like Beacon-Schneider would show you as the owner. All the bank cares about is any encumbrances which might affect their ability to sell the property should it come down to that.
A HELOC may not be for everyone, but it can be an instant source of cheap money if needed. A few clicks of the mouse was all I needed to have funds in my checking account. Like any other credit line DON'T borrow what you can't pay back in a reasonable amount of time.
I can't believe all of these people feeling the need to educate someone contemplating a 6 figure coin on how to manage his money. Clearly someone in that position has the acumen to make prudent financial decisions. Debt is a tool to be used to achieve goals, such as your house is under contract to sell and you want to use those funds but it doesn't close for 2 months and this pop 1 coin comes available. You add in the cost of the financing and bid appropriately. Nothing wrong with that. OP is just trying to figure out the best debt instruments to use, he'd not here for a lecture on whether it's wise to take out debt to fund a hobby.
HELOCs in my state are generally free. Electronic appraisal can be sufficient especially if you're only going to f80% combined LTV there's so much margin they don't care .
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I’m a big fan of CAC. But there are plenty of non-CAC six-figure coins that are extremely liquid.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
I could see it for a month or two while waiting for a t bill to mature if the current interest rates would give me more of a haircut on that early sale than 1% a month would cost for financing. Or I would just call a close buddy and ask him to front me some cash for a short time, as he did back in 1998 when I needed 700K fast for a down payment to close a house in SF while my Paradise Valley place was closing slower, and his rate was 0, so that would be my first call.
Here in Utah I did a HELOC about 5 years ago, went through a credit union, (best rates) it cost me nothing to do it, filed out the paper work, they paid for everything
Had the money availanle in my account in a week
Like @ProofCollection said above Quoie:Debt is a tool to be used to achieve goals
Mike
My Indians
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The time to buy a rare coin is when you see it, not months after you see it.
“I believe in intuitions and inspirations. I sometimes feel that I am right. I do not know that I am. When two expeditions of scientists, financed by the Royal Academy, went forth to test my theory of relativity, I was convinced that their conclusions would tally with my hypothesis. I was not surprised when the eclipse of May 29, 1919, confirmed my intuitions. I would have been surprised if I had been wrong. I am enough of the artist to draw freely upon my imagination. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.” Albert Einstein- quoted in Saturday Evening Post interview (1929)
“Whoever is careless with the truth in small matters cannot be trusted with important matters.” For Einstein, honesty was fundamental. Attention to truth in small things reflected a person’s integrity on a larger scale.
The only 6 figure coins I ever bought were when the cents were included.
I agree with your comment, but with current rates, a HELOC isn’t going to be much cheaper than using HA financing if they came down a bit. Hell, I would offer financing at 9-10% with a Down payment equal to the BP, receive a secured and solid return, AND I get to play with a gorgeous circulated 1794 $1 w/cac for 6 months to a year? That almost sounds too good to be true! 😅
No one is borrowing money at less than 6-7% right now, minimum, and many are actually in the 8-9% range if your credit isn’t perfect. A HELOC still might be one of the best options for something like this, but I’d attempt to get a high limit credit card and put as big of a chuck on that as I can, but in order for HA to accept that you might need to cover a portion of the processing fee. Even so, that would be much cheaper than a HELOC and with so many cards that offer 1-2% cash back, it could help offset the processing fee.
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There are plenty of people who have money but aren't financially astute. I know a guy who had $750,000 in cash in his house and only $150k actually invested anywhere.
I also know a guy who has been financing coin purchases for 30 years. Great collection but barely enough savings to retire.
Unless, of course, it's a fake 1909-S VDB!
"When they can't find anything wrong with you, they create it!"
Those aren't rare. 😉 Nor are the posters willing to argue about their authenticity.