HELOC payoff

chicagobride_07

DH and I had a HELOC which has been paid off in full.  Is there any benefit for us to keep this open with a zero balance, or should we ask to have the account closed?

If closed, do I need to do anything special after this is done like making sure that the payoff is recorded with the county, etc.?

 

MommyLiberty5013

Sometimes HELOCs remaining open, with $0 balance, have annual fees. You should check on that.

HELOCs are harder to get approved for these days, so that could be a benefit for keeping it open.

If you think it will be tempting to use - maybe you should close it.

But, if you already have a decent e-fund saved up, and this HELOC being open could just be a Plan B for emergencies then maybe you should leave it open.

I see it going both ways, it all depends on how responsible you are and what your overall financial picture looks like. 

Sisugal

I am not a fan of HELOCs in general as I do not think borrowing from your home equity is a wise financial move.

IF you must borrow from equity, they go with a HEL (loan)  if you have good credit and adequate equity at the time of need.

I would close the HELOC to avoid temptation.

chicagobride_07

Thanks, both.  In talking to the bank, I found out that there is a $450 fee in the first 2 years to close.  I can keep it open with a zero balance, with no fees.  We will do this and not utilize.