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I now have the priviledge of paying fees on a line of credit I can't use! WOOT!

Discussion in 'Off Topic [BG]' started by dryheatbob, Apr 25, 2009.


  1. ;)

    Long story long is when we bought our house 12 years ago we took out a line of credit to pay for our pool- I didn't want to pay 30 years of interest on it. So we paid the loan off about 7-8 years ago and haven't used the line of credit since- figured we'd keep it open just in case.
    Yesterday we get two letters from the bank. First one says we are going to have to pay a $50 annual fee to keep the line open. Makes sense; we don't use it and they should get something to maintain it.

    Second one says that they are going to freeze the account, so while we can pay on it(!we don't owe anything!) we can't borrow against it, due to dropping home prices and defaults on loans like this.

    This one was a bit of a head scratcher, since the value of our home is still about 50-60% more than we paid for it as well as the point that we've paid the principal down to less than half the original loan. If I'm doing the math right, we'd need to borrow 3x the amount available on the line of credit to surpass the original purchase price or the home, and about 6x that amount to pass its value today. We couldn't borrow more than the house is worth even if we tried.

    No biggie since we don't forsee a need to use the loan.

    But combining the frozen account with an annual fee? :spit:

    Me thinks we'll be cancelling the credit line on Monday.


    Anyone else running into stuff like this? I wonder if the various departments at this place even know the others exist.

    Bob
     
  2. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    truerwordswereneverspok.
     

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