Reply to Thread

Message

<blockquote data-quote="MaddSkillz" data-source="post: 1328509" data-attributes="member: 1159">I don&#039;t have those numbers.&nbsp; But in my experience and based on what I saw from my co-worker, I&#039;d say the vast majority go with the LOC.&nbsp; And I&#039;m talking 90%.&nbsp; As far as keeping it in there... I don&#039;t know.&nbsp; That would have to analyzed over a few years time at least.&nbsp; But I do know that there are those who just wanted it there for an emergency or a rainy day fund.Also consider that they can put funds in the LOC, take monthly payments and also get a lump sum.&nbsp; A lot of folks got a small lump sum up front and put the rest in the LOC to draw on when they wanted... Also, the interest only accrues on the money they use.&nbsp; If they get a RM for $50k but put $25k in the LOC, interest is only accruing on the $25k they borrowed.&nbsp; Whatever is in the LOC is growing at a half a point higher than the interest rate on the RM.Does that answer your question?Sorry, but this isn&#039;t exactly the simplest subject of discussion for the interwebz.&nbsp; I&#039;m trying to be poignant as I can.</blockquote>

[QUOTE="MaddSkillz, post: 1328509, member: 1159"] I don't have those numbers. But in my experience and based on what I saw from my co-worker, I'd say the vast majority go with the LOC. And I'm talking 90%. As far as keeping it in there... I don't know. That would have to analyzed over a few years time at least. But I do know that there are those who just wanted it there for an emergency or a rainy day fund. Also consider that they can put funds in the LOC, take monthly payments and also get a lump sum. A lot of folks got a small lump sum up front and put the rest in the LOC to draw on when they wanted... Also, the interest only accrues on the money they use. If they get a RM for $50k but put $25k in the LOC, interest is only accruing on the $25k they borrowed. Whatever is in the LOC is growing at a half a point higher than the interest rate on the RM. Does that answer your question? Sorry, but this isn't exactly the simplest subject of discussion for the interwebz. I'm trying to be poignant as I can. [/QUOTE]

Verification