Financing in 19128>Question Details

Denise, Both Buyer and Seller in Phoenixville, PA

Paying HELOC while house is for sale

Asked by Denise, Phoenixville, PA Thu Jun 12, 2008

If my house is up for sale, should I pay the minimum on my HELOC or should I continue to pay more than the minimum as I always have?

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I fully agree with the previous posts and wish to add my own two cents.

If at all possible, paying off the HELOC and closing that account can help speed up the sale of the home by not having any other lien on your property except for the principle lien.

Hope that helps.

Terrence Charest
1 vote Thank Flag Link Thu Jun 12, 2008
Paying only the minimum payment or paying additional principle will have the same net effect. If you pay additional principle you will receive a larger check at closing, if you only pay the minimum payment you will have additional funds available to you. In the end the question is really, what will you do with the money if you don't spend it on the HELOC. If you will use it to further another, more important financial goal, then I would pay the minimum. However, if you would choose to spend it on something with no long term risidual value (eating out, new car, clothes, etc.) you would be better off to put the money into the HELOC. It really comes down to how disciplined you are with your finances.
1 vote Thank Flag Link Thu Jun 12, 2008
Denise -

This is truley personal preference and a point could be made on either side.
The bottom line is to you want the money in your pocket now or at closing?
The more you pay toward liens on the property the more money you will receive at close of escrow of the home.
Depending on the location and marketability of your property it may or may not benefit you to continue to pay excess toward your HELOC.

Tammy
0 votes Thank Flag Link Thu Jun 12, 2008
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