The article talks about what she did when her HELOC rate kept climbing with balance transfer checks and a low 2.99% interest credit card.
Here is an excerpt from her article:
…However, short term rates quickly started to jump upwards, and within 9 months or so I found my HELOC rate pushing 9% ” my monthly payments had doubled, and I wasn’t even paying off any of the balance on the HELOC! I looked into refinancing everything (again), but long-term rates weren’t really good enough to justify that, given the expense of closing costs, etc…
…Then, one day when I was paying my credit card bill online, I had an idea¦.
…One of my credit cards had recently sent me some balance transfer checks in the mail, which I could use for cash, write as normal checks, or use for paying off other credit cards. I had a generous credit line on this card (and no current balance) which meant that I could write one of these checks for up to $25,000. There was a fee for writing the checks, but only of 3% (capped at $75 ” only 0.3% of the full $25,000). They weren’t offering a low promotional rate on these checks, however, I also received another credit card offer in the mail from another card ” 2.99% on balance transfers for the life of the balance (also no current balance on this card, and a credit line of $30,000). The wheels were turning¦
…I wrote one of the balance transfer/cash advance checks out to myself, in the amount of $25,000, and deposited it into my checking account…and then logged into my account for the other card ” and transferred the $25,000 balance, on the low 2.99% rate for the life of the balance. There was also a 3% fee for this transaction, but it was capped at $60, which is only 0.2% of the full $25,000.
So, I refinanced my 9% variable rate HELOC to 2.99% (fixed) for $135…
Read the entire article at Do it yourself refinancing.