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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (590)	1/5/2004 10:50:56 AM
From: Apollo	Respond to of 2955

Mike, thanx for the input on cash. Good points. Apollo

To: Mike Buckley who wrote (590)	1/5/2004 1:59:29 PM
From: tinkershaw	Respond to of 2955

If a couple reports that both spouses have lost their jobs, the line of credit could become in serious jeopardy. This happened to the real estate agent who sold me my present house. I'd read the fine print. Plus the interest rate is probably variable and who knows what interest rates will be in a few years. A financial planner I saw recommended using the home equity line for this purpose, but I am not real comfortable with such advice, at least looking into the future. Presently it would be fine but I don't know what interest rates or equity line availability will be, say3 to 5 years from now. Tinker

To: Mike Buckley who wrote (590)	1/7/2004 2:46:31 PM
From: Vegas	Respond to of 2955

Similarly, the application for the line of credit probably requires that you state the intended use of the funds. The contract is probably inextricably linked to the application. If you use the funds for a purpose other than specified in the application, fraud issues could surface. Actually the banks don't require to know what the funds or for or much less care. Its quite common for them to advertise using the loan for such things as debt consolidation, home repairs, vacation, school or even big ticket purchases like boats and RV's. Basically they market it as "free" money. Heck you don't even need to pay any principal for 10-years, only interest. None-the-less I doubt its a good idea to go further into debt during a financial crisis such as the complete lost of income.