Official HELOC (Home Equity Line of Credit) thread

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
LittleMaggieMae
Posts: 2545
Joined: Mon Aug 12, 2019 9:06 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by LittleMaggieMae »

I may be missing the obvious (I'm good at that...)

1.) If a lender doesn't do business in your area (as in there are no locations or branded ATM kiosks) will they consider your request for a HELOC?
2.) If you are not applying for a large credit line (say under 100K) will you pay more for it? Either in interest rate or initial cost to set up?
cjonblanchard
Posts: 78
Joined: Fri Jun 21, 2013 5:03 pm
Location: Chicago area

Re: Official HELOC (Home Equity Line of Credit) thread

Post by cjonblanchard »

Through 11/30/22, Wintrust Bank in parts of Illinois, Indiana, and Wisconsin is offering a 1.99% HELOC for the first 6 months, increased to Prime Rate+1% afterwards (depending on size of loan); 80% loan to value with no fees except for an annual $50 fee after the 1st year, but $500 charge if closed before 2 years. They estimate time to close at 1 month.

I plan to use the HELOC essentially as a bridge loan prior to moving to a CCRC in Spring 2023. I applied for it last week and the closing on my move to a townhome at the CCRC isn't until perhaps March 1, 2023. I'll likely put my home on the market in January or February 2023, so eventual sale may not close until a couple/few months after my closing on the CCRC townhome.

Though Wintrust will likely be ready to close on my HELOC in mid-September, I'll ask if it's possible to postpone closing until October or November. That way, if the eventual sale of my present home doesn't take place until March - May, I'll only pay 1.99% APR in the interim between the future CCRC townhome closing to present home closing. Fingers crossed they'll go along with me on the delay. The original introductory rate was due to expire on 9/30, but it appears that it was extended this week to 11/30. Had I known that, I would've waited to apply.
4th and Inches
Posts: 253
Joined: Mon Nov 12, 2012 7:53 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by 4th and Inches »

I know it is not a great time for one, but who should I consider for a HELOC other than Third Federal? I'm in the Colorado front range in case there are local only HELOC offers. With Third Federal HELOCs are they interest only during the draw period or do you begin to pay principal right away?

I have also seen PNC referenced as an option as well.

Any other banks to consider? It seems like many banks have their rate information really out of date.
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Silk McCue »

4th and Inches wrote: Sat Sep 24, 2022 9:03 am I know it is not a great time for one, but who should I consider for a HELOC other than Third Federal? I'm in the Colorado front range in case there are local only HELOC offers. With Third Federal HELOCs are they interest only during the draw period or do you begin to pay principal right away?

I have also seen PNC referenced as an option as well.

Any other banks to consider? It seems like many banks have their rate information really out of date.
I’m regards to Third Federal payments see this post by me from April earlier in the thread.

viewtopic.php?p=6630178&hilit=100+minimum#p6630178

Cheers
User avatar
8foot7
Posts: 4426
Joined: Mon Jan 05, 2015 6:29 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by 8foot7 »

4th and Inches wrote: Sat Sep 24, 2022 9:03 am I know it is not a great time for one, but who should I consider for a HELOC other than Third Federal? I'm in the Colorado front range in case there are local only HELOC offers. With Third Federal HELOCs are they interest only during the draw period or do you begin to pay principal right away?

I have also seen PNC referenced as an option as well.

Any other banks to consider? It seems like many banks have their rate information really out of date.
Our Third Federal HELOC includes a principal portion in the monthly payment. This is touted as a feature.
4th and Inches
Posts: 253
Joined: Mon Nov 12, 2012 7:53 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by 4th and Inches »

Thanks guys. Third Federal seems to be the top contender. Any other HELOC suggestions to look into?
Tonygis
Posts: 41
Joined: Fri Jun 23, 2017 12:52 am

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Tonygis »

I’m in Phoenix Arizona. Just closed on a Heloc with PNC bank. Very easy. Got .30 under prime. Highly recommend!
JHart
Posts: 45
Joined: Wed Sep 14, 2016 9:14 pm

Redacted

Post by JHart »

Redacted
Last edited by JHart on Sun Jun 18, 2023 10:15 am, edited 1 time in total.
Econberkeley
Posts: 191
Joined: Thu Jan 16, 2014 5:51 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Econberkeley »

Does HELOC can be used towards buying another property?

I am planning to buy another property with cash+HELOC and then sell the current house and pay off the HELOC with proceeds.

In other words can you sell a house with already HELOC on it?
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Silk McCue »

Econberkeley wrote: Sat Oct 01, 2022 10:07 pm Does HELOC can be used towards buying another property?

I am planning to buy another property with cash+HELOC and then sell the current house and pay off the HELOC with proceeds.

In other words can you sell a house with already HELOC on it?
The HELOC must be paid and closed when the property it is secured by is sold. That will be done as part of the house sale closing process.

Cheers
Econberkeley
Posts: 191
Joined: Thu Jan 16, 2014 5:51 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Econberkeley »

Silk McCue wrote: Sun Oct 02, 2022 5:50 am
Econberkeley wrote: Sat Oct 01, 2022 10:07 pm Does HELOC can be used towards buying another property?

I am planning to buy another property with cash+HELOC and then sell the current house and pay off the HELOC with proceeds.

In other words can you sell a house with already HELOC on it?
The HELOC must be paid and closed when the property it is secured by is sold. That will be done as part of the house sale closing process.

Cheers
I heard some HELOC lenders require borrower to reside in the house at least next 12 months. Is this common or not?
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Silk McCue »

Econberkeley wrote: Sun Oct 02, 2022 11:38 am I heard some HELOC lenders require borrower to reside in the house at least next 12 months. Is this common or not?
I’ve never heard of that. Regardless if you sell the home they can’t require you to stay there.

Cheers
fish8me
Posts: 32
Joined: Tue Sep 25, 2018 4:14 pm
Location: Miami, Fl.

Re: Official HELOC (Home Equity Line of Credit) thread

Post by fish8me »

Funny, I'm actually going through this too in South Florida... PNC has been offering this 2.99 for 6 months introductory APR but will penalize us (prorated) if we pay off the loan withing a year. We are planning on taking a HELOC on our primary and use the funds to renovate one of our rentals which we are planning to move to in the spring of 2023. So, we're still trying to figure out our best route.
Tonygis
Posts: 41
Joined: Fri Jun 23, 2017 12:52 am

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Tonygis »

JHart wrote: Fri Sep 30, 2022 6:30 am
Tonygis wrote: Wed Sep 28, 2022 1:23 am I’m in Phoenix Arizona. Just closed on a Heloc with PNC bank. Very easy. Got .30 under prime. Highly recommend!
Wow, thank you for this post. I'm in Tucson and was trying to find a well-reviewed HELOC with Third Federal not active in Arizona. Can you share how long the process took from application to funding?
Approximately a month.
Econberkeley
Posts: 191
Joined: Thu Jan 16, 2014 5:51 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Econberkeley »

I just talked to RBFCU in TX for HELOC

https://www.rbfcu.org/home-loans-realty ... ity-loansc

They close in 60-75 days

Company: RBFCU
State of HELOC: TX
HELOC Amount: $288K
Mortgage + HELOC LTV: 80%
Interest Rate: Prime - 0.50 = %5.75
Draw period / repayment period: NA
Application fee:NA
Annual fee NA:
Appraisal: 635
Closing 375
Title 1823
Endorsement 692

All fees are totaling $3,950
Econberkeley
Posts: 191
Joined: Thu Jan 16, 2014 5:51 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Econberkeley »

Just talked to Credit union of TX

https://www.cutx.org/heloc

Close in 30-45 days

Company: Credit union of TX
State of HELOC:TX
HELOC Amount: 280K
Mortgage + HELOC LTV: 80%
Interest Rate: Prime +0.75
Draw period / repayment period: 5/10 years

No fees whatsoever
Here is the excerpt from email

Zero Closing Cost
No Prepayment Penalty
Interest Only Option during Draw Period
Only pay on what you utilize out of the LOC
Up to 10 years draw period available
Fixed or variable rate options available
Quick Close for quick access to funds (average 30-45 days to close)4
Econberkeley
Posts: 191
Joined: Thu Jan 16, 2014 5:51 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Econberkeley »

Be aware of low introductory rates

I searched for HELOC in TX at bankrate.com and only PNC bank popped up. This is their sales pitch on the website

3.74% Intro APR for the first 6 months, then 5.63% - 12.60% Variable APR on PNC's Choice HELOC

Then I called and asked for details. They said if you pay everything off before 3 years then I will be charged all fees that can add up to $2500

In my case I am selling the house so account will be closed automatically so no go here
User avatar
femur
Posts: 409
Joined: Fri Apr 11, 2008 2:07 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by femur »

Im going to be shopping for a HELOC in the near future and want to understand the different parameters I should consider. Am I missing anything from this list?
  • Rate
  • Draw Period
  • Payment Period
  • Closing costs
  • Fees
  • Prepaymant penalties
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

Curious for those that have gone through the appraisal process, how close was your appraisal to something like Redfin? I did a HELOC last year, and the appraisal came back at $2.3M, whereas Redfin said $2.8M and my next door neighbor had just sold for $2.8M with less square footage. Wondering if I go to get a larger HELOC am I just wasting my time? Redfin currently says $3.2M!
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

Tonygis wrote: Wed Sep 28, 2022 1:23 am I’m in Phoenix Arizona. Just closed on a Heloc with PNC bank. Very easy. Got .30 under prime. Highly recommend!
Did you negotiate the rate? I see the rates posted on the website are Prime + margin.
User avatar
Eric
Posts: 862
Joined: Fri Feb 23, 2007 4:44 pm
Location: Texas

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Eric »

Econberkeley wrote: Mon Oct 03, 2022 11:53 am I just talked to RBFCU in TX for HELOC
Econberkeley wrote: Mon Oct 03, 2022 12:10 pm Just talked to Credit union of TX
In the DFW area, you may also want to check with EECU. No closing costs on HELOCs up to $199,999, 2.99% intro rate for 6 months, prime rate after that. We just took out a HELOC with them and closed in about a month.
fish8me
Posts: 32
Joined: Tue Sep 25, 2018 4:14 pm
Location: Miami, Fl.

Re: Official HELOC (Home Equity Line of Credit) thread

Post by fish8me »

We're in the process of getting a HELOC too... Is anyone aware of a decent offer from lenders in the Florida are???located in Miami, FL. Thanks for the thread...
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Silk McCue »

fish8me wrote: Tue Oct 11, 2022 5:47 pm We're in the process of getting a HELOC too... Is anyone aware of a decent offer from lenders in the Florida are???located in Miami, FL. Thanks for the thread...
It’s very hard to beat ThirdFederal’s subprime rate of FL. I have them and recommend them here often. We have a $150k line at Prime -1.01%.

Cheers
fish8me
Posts: 32
Joined: Tue Sep 25, 2018 4:14 pm
Location: Miami, Fl.

Re: Official HELOC (Home Equity Line of Credit) thread

Post by fish8me »

Silk McCue wrote: Tue Oct 11, 2022 6:44 pm
fish8me wrote: Tue Oct 11, 2022 5:47 pm We're in the process of getting a HELOC too... Is anyone aware of a decent offer from lenders in the Florida are???located in Miami, FL. Thanks for the thread...
It’s very hard to beat ThirdFederal’s subprime rate of FL. I have them and recommend them here often. We have a $150k line at Prime -1.01%.

Cheers
Your right... we have not heard of them. branch office up in Broward County. Lowest fees I've seen so far. Let me ask you, we are planning on remodeling/upgrading an investment property that we will be moving into once our nest is empty in 2023,,, therefore the HELOC for cost...Could we apply now and call it our primary residence even though we're not moving into next May of 2023. Just your thoughts...
Count of Notre Dame
Posts: 447
Joined: Fri Oct 11, 2013 1:08 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

Silk McCue wrote: Tue Oct 11, 2022 6:44 pm
fish8me wrote: Tue Oct 11, 2022 5:47 pm We're in the process of getting a HELOC too... Is anyone aware of a decent offer from lenders in the Florida are???located in Miami, FL. Thanks for the thread...
It’s very hard to beat ThirdFederal’s subprime rate of FL. I have them and recommend them here often. We have a $150k line at Prime -1.01%.

Cheers
The only downside I see is their maximum limits on loan amounts and the fact that your payments are not interest only?
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Silk McCue »

fish8me wrote: Tue Oct 11, 2022 7:43 pm Your right... we have not heard of them. branch office up in Broward County. Lowest fees I've seen so far. Let me ask you, we are planning on remodeling/upgrading an investment property that we will be moving into once our nest is empty in 2023,,, therefore the HELOC for cost...Could we apply now and call it our primary residence even though we're not moving into next May of 2023. Just your thoughts...
The application process is done online and closing comes to you for paperwork signing. No you can’t call the investment property your primary home if it isn’t. I’m not certain whether they will put a HELOC on the 2nd home or not. You would need to discuss with them.

If you plan to sell your current home when you move to the new home you would need to pay the HELOC off at closing.

Cheers
Tonygis
Posts: 41
Joined: Fri Jun 23, 2017 12:52 am

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Tonygis »

Count of Notre Dame wrote: Tue Oct 11, 2022 5:07 pm
Tonygis wrote: Wed Sep 28, 2022 1:23 am I’m in Phoenix Arizona. Just closed on a Heloc with PNC bank. Very easy. Got .30 under prime. Highly recommend!
Did you negotiate the rate? I see the rates posted on the website are Prime + margin.
No negotiation. The standard rate was .05 under prime and then I opened a checking account to get another .25. So a total of .30 under prime.
Liquidus
Posts: 13
Joined: Tue Apr 17, 2012 12:26 am

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Liquidus »

I did a test application with Third Federal and got a summary of terms that might be helpful for people:

Home equity line of credit in the amount of $200,000.00
- 10 year draw period
- 20 year repayment period
- 30 year amortization period
- Variable rate based on Prime
- Interest rate will be Prime -0.26% for balances under $50,000 (initial interest rate of 5.99) and Prime -0.76% for balances over $50,000 (initial interest rate of 5.49%)
- Rate will never be less than 2.24% or higher than 18%
- Annual fee of $65 applied in years 2-10 only (applies even if no balance)
- Minimum payment will never be less than $100 (does not apply if no balance)
- Principal and interest payments required during draw period
- No application fee, no origination fee, no exterior appraisal fee, no closing costs, no prepayment penalty, no early termination fee, no minimum draw, no inactivity fee
- No automatic payments required
- Property title can’t be held in trust
- Property can’t be under construction
- Primary Residence only
fish8me
Posts: 32
Joined: Tue Sep 25, 2018 4:14 pm
Location: Miami, Fl.

Re: Official HELOC (Home Equity Line of Credit) thread

Post by fish8me »

Thank you... your break down is well listed. Are you familiar with the loan terms if it's a on a secondary property?? (We are plan on moving into in 2023).
User avatar
simplesimon
Posts: 4566
Joined: Mon Feb 25, 2008 7:53 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by simplesimon »

Liquidus wrote: Tue Oct 18, 2022 7:01 pm - Interest rate will be Prime -0.26% for balances under $50,000 (initial interest rate of 5.99) and Prime -0.76% for balances over $50,000 (initial interest rate of 5.49%)
I believe this is relatively new. They were offering prime - 1.01% for a long time.
Invictus002
Posts: 194
Joined: Fri Feb 15, 2019 11:49 am

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Invictus002 »

Is this something worth pursuing?

US Bank:
70% LTV Prime + 0.95% (with US Bank checking)
No closing costs, or appraisal fees.
Annual fee :$90
Draw period: 10 years
Repayment period: 20 years

IMO better than Penfed.

Any other suggestions?
Post Reply