Lloyds of Lubbock
Guru
- 793
Using your example.
A client wants a 100k and capitalize the interest.
So he gets a loan of 105k assuming 5% loan rate.
He receives a 100%
He pays back the loan of 105k and his policy no longer has a loan.
Can he use that 105K ?
Yes.
Remember he only received a100K so that cost was 5%
You paid a 105k to get a 100.
That 5k went to the insurance company.
I am not sure how a HELOC entered in this.
A client wants a 100k and capitalize the interest.
So he gets a loan of 105k assuming 5% loan rate.
He receives a 100%
He pays back the loan of 105k and his policy no longer has a loan.
Can he use that 105K ?
Yes.
Remember he only received a100K so that cost was 5%
You paid a 105k to get a 100.
That 5k went to the insurance company.
I am not sure how a HELOC entered in this.