Borrow from HELOC to get Interest from ING

[JohnMo]

This seems like a good way to leverage (not sure this is the right term) the credit that I'm given. If I write a check for 20k to myself, deposit it in my ING acct, pay the HELOC bill when due, and repeat say 6 times per year at 30 days per shot at current rates, I'm looking at $420 per year right. Am I missing something? Is everyone doing this? Is there a name for it?

[SossMan]

[ QUOTE ]
This seems like a good way to leverage (not sure this is the right term) the credit that I'm given. If I write a check for 20k to myself, deposit it in my ING acct, pay the HELOC bill when due, and repeat say 6 times per year at 30 days per shot at current rates, I'm looking at $420 per year right. Am I missing something? Is everyone doing this? Is there a name for it?

[/ QUOTE ]

What are the rates for both?

It's called arbitrage.

[JohnMo]

HELOC = 0% if I pay back before due date
ING = 4.5%

[Cubswin]

Less your tax liability and interest lost while the transferring of funds takes place. I know next to nothing about HELOCs... be sure to read the T&Cs closely before proceeding.

[prohornblower]

[ QUOTE ]
HELOC = 0% if I pay back before due date


[/ QUOTE ]

I doubt you can get 6 HELOC's in one year, at 0%. Although I really don't know that much about HELOC's. It seems to me like if you "abuse" them, the bank will catch on, and either refuse granting them, or jack up the rate.

[jaydub]

[ QUOTE ]
[ QUOTE ]
HELOC = 0% if I pay back before due date


[/ QUOTE ]

I doubt you can get 6 HELOC's in one year, at 0%. Although I really don't know that much about HELOC's. It seems to me like if you "abuse" them, the bank will catch on, and either refuse granting them, or jack up the rate.

[/ QUOTE ]

Prepayment penalty and loan costs FTW!


J