thecoach

Hi,

Im trying to load up on miles by the fall, to get another business class around the world.. Ive done some searches on getting Home equity loans. Any body have any experience with this? It seems some people have recieved 200k miles opening numerous accounts, then redepositing the money the next day, only having to pay 1 day of interest charges. This sounds too easy, and am surprised this 'loop hole' exists. Any comments?
Does anybody know how opening a 100k home equity account can effect one credit score?? I would keep the balance at zero, but not sure if having access to that much money would effect my score. Could I open up more than 1 home equity loan and do this a few times through different participating banks?

I just opened a checking and money market through NETbanking (4k miles each account) and a AMERITRADE account. 25k miles) Lets see if it actually posts. Any experiences with this?

thanks

ibrandsguest

I'd think that getting multiple US Visas/MCs would be much less damaging than taking out a home equity loan, plus much less of a hassle. Plus cheaper!

tommyleo

I have two home equity lines of credit (HELOC's). I have a balance on only one. My credit score is 720. Would my credit score be higher if I did not have the two HELOC's? Not sure -- but it doesn't really matter.

That said, if your credit score is presently 690 or so, any hit to your credit could drop you below 680, which is often considered to be "top" credit. Again, I don't know if a home loan will hurt you, but if your credit score is not already well into the 700's, be sure to find out.

Cargojon

Better make sure they're "no closing cost" Home Equity Loans....

canuck_in_pa

And also 'no early closing cost'. Some banks now charge $1000+ if you close the HELOC within 3 years, for any reason (including selling the house that's mortgaged).

Most mile awards are 1250 miles per $10K borrowed, sometimes limited to a max of 25K miles though. If you're looking for around 300K miles, you'll need a $2.4 million loan.

thecoach

thanks for you comments: UPDATE on the 'home equity loans'

I qualified for 125k home equity loan through Wachiova. I do have to pay for application fee/ appraisial, which would cost me about $800. From what what i understand I can draw the loan on the day i close, and get 1 mile per dollar drawn.. which could be 125k miles. I am going to get a packet in the mail, and I will do more research.. So it could 800 dollars for 125k.. well worth it, plus a day or two of interest.. So i think it could remain under 1000 bucks. I will try to call Citi and another bank tomorrow.

Chase has a separate offer that you deal directly with chase for a max of 25k miles. To get the full 25k miles I would need to draw a loan of 72k which i qualified for. There are no closing costs or apprasial. my only fees which would be the interest on the loan. She claimed it would take at least 3 days to pay it back after i get the money.. i am not sure why , If i wire it back the next day. regardless it would be about $30 a day in interest. Lets say max 4 days.. $120 plus there is a yearly maintenance fee of $50.. there is a minimum the account must be kept open.. 3 years.. the first year is waived.. So I will have to pay about $200 for 25k miles.. a decent deal with a couple hours of work. Ill keep searching for the best deal.

crhptic

Just be aware that you may not be able to do more than one home equity loan - lenders may insist you payoff and close another home equity line in order to get theirs.

For example, if you do the Chase one, you probably can't go and then do the Wachovia one without closing the Chase one and running into whatever fees/costs you incur from closing it within 3 years...

canuck_in_pa

I talked to Chase one time about getting a HELOC if I already had the Wachovia one and a first mortgage. That wasn't possible. I wonder if 2 HELOCs would be possible without a first mortgage... Anyone knows?

crhptic

Probably, although they are going to assume the maximum draw on both to figure out how much you would be allowed to borrow on the second.