HELOC question

iVillage Member
Registered: 03-08-2005
HELOC question
1
Fri, 12-16-2005 - 3:34pm

We bought a house 2.5 years ago. The way the lender did our loan was an 80/20 loan. A traditional 30 year for 80% of the cost of the house and a HELOC for the other 20%. That way, we didnt need to have a down payment.

Im just wondering if its a bad thing. I mean the initial HELOC was for 37000 and today, the balance is 36609. That is not much headway in 2.5 years. We pay about 220 a month for this loan, all interest. It makes me mad..like Im throwing my money away. On the other hand, we couldnt have this house with out it and I dont have any problem coming up with the money to pay it.

Is this a common thing? I cant pay much more than the minimum payment now b/c we are trying to pay off 11k in CC debt (we took out a loan against our 401k to pay off another 21k in cc debt).

Should I just not worry about it right now since I have alot of unsecured debt to take care of?

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
In reply to: natansyd
Fri, 12-16-2005 - 5:42pm

Generally speaking, it's not a great thing.

All my best,
Danni