Hello Folks - Grasping at straws here but thought perhaps someone might be able to figure out. I will try to lay it out as basically as possible.
1/ I currently have $205,000 Home Equity Line Of Credit at 5% per annum with the only requirement being that interest must be paid on a monthy basis on the outstanding balance with no principal necessary to be repaid until all funds have run out ( necessitating sale of house to repay the $205,000 in full). There is currently a zero balance and I will not pull from this source until all my cash on hand from other sources has been depleted.
Once all other cash sources have been zeroed out, my intention is to pull, from the line of credit, $1000 per month to top up my pension / pensions plus whatever interest dollar amount I will need to pay back to the bank to pay the increasing monthly interest payment required based on the increasing line of credit monies outstanding based on the accumulating debt.
My question being, at what point will the whole $205,000 be used up in full and how much will I have fully realized / netted of the $205,000 along the lines of how much principal will I have obtained over the term and how much interest will I have paid? Trying to figure out how many months / years I can pull from the line of credit before I have to sell my house to pay off the line of credit.
Thanks for your help!
1/ I currently have $205,000 Home Equity Line Of Credit at 5% per annum with the only requirement being that interest must be paid on a monthy basis on the outstanding balance with no principal necessary to be repaid until all funds have run out ( necessitating sale of house to repay the $205,000 in full). There is currently a zero balance and I will not pull from this source until all my cash on hand from other sources has been depleted.
Once all other cash sources have been zeroed out, my intention is to pull, from the line of credit, $1000 per month to top up my pension / pensions plus whatever interest dollar amount I will need to pay back to the bank to pay the increasing monthly interest payment required based on the increasing line of credit monies outstanding based on the accumulating debt.
My question being, at what point will the whole $205,000 be used up in full and how much will I have fully realized / netted of the $205,000 along the lines of how much principal will I have obtained over the term and how much interest will I have paid? Trying to figure out how many months / years I can pull from the line of credit before I have to sell my house to pay off the line of credit.
Thanks for your help!