Official HELOC (Home Equity Line of Credit) thread
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Re: Official HELOC (Home Equity Line of Credit) thread
Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?
I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.
Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.
Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
Re: Official HELOC (Home Equity Line of Credit) thread
Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
Re: Official HELOC (Home Equity Line of Credit) thread
If I'm understanding right, that looks like about 20 days' interest.Maven wrote: ↑Wed Dec 15, 2021 12:09 pm Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by $4,700 = 38.5 cents a day
Times 20 days = $7.70
Re: Official HELOC (Home Equity Line of Credit) thread
Thank you!cfuser wrote: ↑Wed Dec 15, 2021 10:18 pmIf I'm understanding right, that looks like about 20 days' interest.Maven wrote: ↑Wed Dec 15, 2021 12:09 pm Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by $4,700 = 38.5 cents a day
Times 20 days = $7.70
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Re: Official HELOC (Home Equity Line of Credit) thread
I'm not sure if Third Federal Savings & Loan does business in PA, but if they do, I would recommend them. We opened a no-cost HELOC with them last year, and the rate is .26% below Prime, which is nigh unbeatable these days and far better than anything we could get from a local credit union.ProfessorX wrote: ↑Mon Dec 13, 2021 11:52 am Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?
The Sensible Steward
Re: Official HELOC (Home Equity Line of Credit) thread
Not that it's a lot of money compared to $400k, but if you don't pay an origination fee for the HELOC, you might get hit with an early closure fee of around $600 if you sell the house.ProfessorX wrote: ↑Mon Dec 13, 2021 11:52 am Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?
I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.
Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
Re: Official HELOC (Home Equity Line of Credit) thread
Bumping this thread. I’d like to pull a HELOC larger than than 200K maximum at Third Federal. Third Federal by far has the lowest rates from what I can find, but the 200K cap probably isn’t enough for my project. Any other good options people have found for higher balance HELOCs? I have plenty of equity in house and LTV ratios will be low.
Re: Official HELOC (Home Equity Line of Credit) thread
My turn to bump - 3rd federal still has by far the best HELOC rate I can find. I'm okay with the long close time, but any members have any poor experiences with their service (either during application or after close)? Would anyone be willing to provide a referral?
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Re: Official HELOC (Home Equity Line of Credit) thread
Not sure that's going to work - see: https://www.irs.gov/newsroom/interest-o ... er-new-lawjst wrote: ↑Fri Apr 02, 2021 3:45 pm I'm thinking about a $1M HELOC on my paid-off house to basically use as a construction loan on a new house. If I do this instead of a construction loan, I think I can deduct the interest. When the new house is built, I'd mortgage that and it'll become my primary residence and then I will deduct that interest.
IRS guidance is that the loan should be "... used to buy, build or substantially improve the taxpayer’s home that secures the loan"
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Re: Official HELOC (Home Equity Line of Credit) thread
I live in an Owner-occupied 3-family and unfortunately ThirdFed does not lend on anything with more units than a 2-family.TJat wrote: ↑Fri Jan 14, 2022 1:16 pm My turn to bump - 3rd federal still has by far the best HELOC rate I can find. I'm okay with the long close time, but any members have any poor experiences with their service (either during application or after close)? Would anyone be willing to provide a referral?
Anybody aware of any lenders who may offer prime minus rates for 3-families?
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Re: Official HELOC (Home Equity Line of Credit) thread
Same. Please PM me if anyone is willing.CygX1 wrote: ↑Sat Oct 09, 2021 3:53 pm I am looking at Third Federal for a HELOC and would like to take advantage of the current loyalty perks offer, which will wave the annual fees if referred by a current member. https://www.thirdfederal.com/our-advant ... ks-program. I would be grateful if any current member could PM me.
Also, does anyone know what all the fees are in FL for opening this. House is owned free and clear if that makes any difference.
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Re: Official HELOC (Home Equity Line of Credit) thread
In Orange County Fl in 2019 our closing fees were only related to filing with the county. $525 Mortgage Doc Tax and $300 Intangible tax. That was based on a $150k line.PowderDay9 wrote: ↑Wed Feb 02, 2022 8:44 amSame. Please PM me if anyone is willing.CygX1 wrote: ↑Sat Oct 09, 2021 3:53 pm I am looking at Third Federal for a HELOC and would like to take advantage of the current loyalty perks offer, which will wave the annual fees if referred by a current member. https://www.thirdfederal.com/our-advant ... ks-program. I would be grateful if any current member could PM me.
Also, does anyone know what all the fees are in FL for opening this. House is owned free and clear if that makes any difference.
From the link it appears that loyalty perks expired 10/31/2021.
Cheers
Re: Official HELOC (Home Equity Line of Credit) thread
Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
Obviously with this not being guaranteed to work, I'm iffy on doing it or just accepting the lower HELOC. We don't have an explicit use at the moment, but may use for either a renovation or down payment on a different house. Any advice from those with experience in similiar situations or anyone else?
For reference, my complaints about the appraisal
- Didn't include benefit from 40k fully paid off solar system
- Didn't include benefit from central AC
- Didn't include benefit from medium/high end kitchen installed recently
- Comps were for not comparable homes. My home is in a peaceful subdivision of medium-high end single family homes built in the early 90s. Comps included 2 homes built in the 1940s, one that neighbored a gas station on a busy road, and 2 single-story homes. I provided a laundry list of more appropriate comps sold recently for much higher $/sq ft values
To me, it seems like upping the line is a logical no-brainer.
Obviously with this not being guaranteed to work, I'm iffy on doing it or just accepting the lower HELOC. We don't have an explicit use at the moment, but may use for either a renovation or down payment on a different house. Any advice from those with experience in similiar situations or anyone else?
For reference, my complaints about the appraisal
- Didn't include benefit from 40k fully paid off solar system
- Didn't include benefit from central AC
- Didn't include benefit from medium/high end kitchen installed recently
- Comps were for not comparable homes. My home is in a peaceful subdivision of medium-high end single family homes built in the early 90s. Comps included 2 homes built in the 1940s, one that neighbored a gas station on a busy road, and 2 single-story homes. I provided a laundry list of more appropriate comps sold recently for much higher $/sq ft values
To me, it seems like upping the line is a logical no-brainer.
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Re: Official HELOC (Home Equity Line of Credit) thread
Their underwriting department works within a very small box at times (recent personal experience). Unless you really need the extra headroom in the HELOC I would just accept the $174k.TJat wrote: ↑Fri Feb 04, 2022 5:37 pm Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
Cheers
Re: Official HELOC (Home Equity Line of Credit) thread
+1. I had referred Third Federal to a relative and Third Federal came back with a low-ball appraisal. So, the relative had the choice of going with the lower HELOC amount, or going with a local credit union's higher appraisal that had a higher interest rate. As "Silk McCue" has noted, unless you need the extra money, then go with Third Federal's offer.Silk McCue wrote: ↑Fri Feb 04, 2022 6:55 pmTheir underwriting department works within a very small box at times (recent personal experience). Unless you really need the extra headroom in the HELOC I would just accept the $174k.TJat wrote: ↑Fri Feb 04, 2022 5:37 pm Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
"You don't stop playing because you're old. You're old because you've stopped playing"
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Re: Official HELOC (Home Equity Line of Credit) thread
+23of10 wrote: ↑Sun Feb 06, 2022 9:53 am+1. I had referred Third Federal to a relative and Third Federal came back with a low-ball appraisal. So, the relative had the choice of going with the lower HELOC amount, or going with a local credit union's higher appraisal that had a higher interest rate. As "Silk McCue" has noted, unless you need the extra money, then go with Third Federal's offer.Silk McCue wrote: ↑Fri Feb 04, 2022 6:55 pmTheir underwriting department works within a very small box at times (recent personal experience). Unless you really need the extra headroom in the HELOC I would just accept the $174k.TJat wrote: ↑Fri Feb 04, 2022 5:37 pm Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
I wouldn't lose any sleep over a $174k HELOC vs. a $200k one unless you know that you truly need the $200k.
The Sensible Steward
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Re: Official HELOC (Home Equity Line of Credit) thread
Does anyone know if it's possible to set up a HELOC, but only use it if you need it?
For example... it's all setup but I choose not to use it for 3 years, then I can suddenly use it if I want to use the cash? Does anything like that exist?
For example... it's all setup but I choose not to use it for 3 years, then I can suddenly use it if I want to use the cash? Does anything like that exist?
Re: Official HELOC (Home Equity Line of Credit) thread
I think they all work like this. You might get a discount for taking a draw at the time of the loan. Some places might not open the line if you don't take an initial draw, since they're not making money. But you should be able to find some that will.buyholdforever wrote: ↑Mon Apr 04, 2022 10:34 am Does anyone know if it's possible to set up a HELOC, but only use it if you need it?
For example... it's all setup but I choose not to use it for 3 years, then I can suddenly use it if I want to use the cash? Does anything like that exist?
The other option is to take the draw, hold it in cash, then pay it off after 30 or 90 days. (My loan required that the first 3 payments be the minimum due before paying more in order to secure the best rate.)
Note that some HELOCs have annual fees, usually $50-100.
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Re: Official HELOC (Home Equity Line of Credit) thread
This is exactly how they all work. They are a line of credit.buyholdforever wrote: ↑Mon Apr 04, 2022 10:34 am Does anyone know if it's possible to set up a HELOC, but only use it if you need it?
For example... it's all setup but I choose not to use it for 3 years, then I can suddenly use it if I want to use the cash? Does anything like that exist?
Cheers
Re: Official HELOC (Home Equity Line of Credit) thread
I didn't see "fixed rate conversion option listed", but my HELOC with BoA allows me a 10 year flexible draw period, and at any time I can choose to convert a draw to a 20 year fixed rate loan at the current prime rate - discount
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Re: Official HELOC (Home Equity Line of Credit) thread
Just finished the process with Bethpage. Absolutely would not recommend them due to their poor service. Their rate was the best I could find at 2.99% promo for 12 months then prime with the ability to convert up to three lines to fixed. Opening their required savings account was extremely difficult and time consuming. Their loan processor wouldn’t answer emails or take calls. Upgrading to a supervisor didn’t help and they wouldn’t even take my calls or emails. Very poor
Re: Official HELOC (Home Equity Line of Credit) thread
Bumping this one as well, we're planning on doing the same thing.jst wrote: ↑Fri Apr 02, 2021 3:45 pm Anyone know about rates and banks on much larger HELOCs?
I'm thinking about a $1M HELOC on my paid-off house to basically use as a construction loan on a new house. If I do this instead of a construction loan, I think I can deduct the interest. When the new house is built, I'd mortgage that and it'll become my primary residence and then I will deduct that interest.
Should also be a lot easier to negotiate and manage than a construction loan.
We currently have a HELOC with US Bank for about $71K. I talked to them yesterday about upping this and they said we'd need to reapply for the HELOC (we're getting close to the end of draw period anyway). I looked into US Bank terms and it looks like they can do up to $750K ($1M in CA). No application/closing costs, but we'd pay a $500 fee if the line is closed before 30 months, which is fine with us.
Anyone know if we can do both a HELOC on our current home and a construction loan on the new home? We'd use the sale of our current home to pay off both (we would likely get in excess of $1.6M in the sale). Construction costs will be over $1M, so the US Bank HELOC won't be enough and I don't want to sell down appreciated stock funds unless I have to (-> LT capital gains tax hit). We have about $250K in various cash/equivalent accounts we can tap, but part of that would go to the construction loan down payment.
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Re: Official HELOC (Home Equity Line of Credit) thread
I just got off the phone with Third Federal and the agent mentioned the loan is amortized over 30 years and principal plus interest is due after the first draw. I thought it's interest only the first ten years.
Can anyone please shed light on this? Is the third federal HELOC interest only during the draw period or is it interest plus principal ?
Can anyone please shed light on this? Is the third federal HELOC interest only during the draw period or is it interest plus principal ?
Re: Official HELOC (Home Equity Line of Credit) thread
A home equity loan is different from a home equity line of credit. Maybe there was some confusion as to what product was being talked about?giddyup969 wrote: ↑Tue Apr 19, 2022 11:23 am I just got off the phone with Third Federal and the agent mentioned the loan is amortized over 30 years and principal plus interest is due after the first draw. I thought it's interest only the first ten years.
Can anyone please shed light on this? Is the third federal HELOC interest only during the draw period or is it interest plus principal ?
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Re: Official HELOC (Home Equity Line of Credit) thread
Pretty sure it was HELOC which has a draw period unlike Home Equity loan. Anyone with recently opened HELOC with Third Federal to confirm?exodusNH wrote: ↑Tue Apr 19, 2022 11:29 amA home equity loan is different from a home equity line of credit. Maybe there was some confusion as to what product was being talked about?giddyup969 wrote: ↑Tue Apr 19, 2022 11:23 am I just got off the phone with Third Federal and the agent mentioned the loan is amortized over 30 years and principal plus interest is due after the first draw. I thought it's interest only the first ten years.
Can anyone please shed light on this? Is the third federal HELOC interest only during the draw period or is it interest plus principal ?
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Re: Official HELOC (Home Equity Line of Credit) thread
Yes Heloc has a 10 year draw period. Note their heloc actual requires some principle repayment in every payment, however you can just withdraw it the next day if you wish.
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Re: Official HELOC (Home Equity Line of Credit) thread
Our Third Federal HELOC has a minimum monthly payment of $100 which is more than the interest due.giddyup969 wrote: ↑Tue Apr 19, 2022 11:23 am I just got off the phone with Third Federal and the agent mentioned the loan is amortized over 30 years and principal plus interest is due after the first draw. I thought it's interest only the first ten years.
Can anyone please shed light on this? Is the third federal HELOC interest only during the draw period or is it interest plus principal ?
From their website.
https://www.thirdfederal.com/resources/ ... uity-guide
CheersHome Equity Line of Credit
A home equity line of credit is a variable-rate loan with a draw period and a repayment period. Home equity lines give you the flexibility to borrow additional funds up to your credit limit. Use your home equity line for whatever you need, whenever you need it. Accessing your funds is as easy as writing a check or using your debit card. You only pay interest on the money as it is borrowed. Once the money is paid back, you may use the funds again. The draw period is a timeframe (usually 5 to 10 years) in which you may borrow on the line and pay it back as many times as you like. You receive a bill each month based on your outstanding balance for either the interest only or for a combination of principal and interest. When the draw period is over, the full balance may be due or a repayment schedule may be set up, depending on your lender. Home equity lines of credit are a great tool when you are uncertain of how much borrowing you will need, or you anticipate having to borrow more funds in the future or for projects like remodeling, that have multiple payments phased in over time.
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Re: Official HELOC (Home Equity Line of Credit) thread
I have a Heloc with BofA that is maxed out (175k). I have a lot of equity in my house and would like a larger Heloc. Is there a way to essentially refinance a Heloc? Basically expand it to 350k.
Or do I need to pay it off and then get a new Heloc? I could do this but would rather avoid this approach.
Or do I need to pay it off and then get a new Heloc? I could do this but would rather avoid this approach.
Re: Official HELOC (Home Equity Line of Credit) thread
Yes, HELOCs can be refinanced. I am doing exactly that right now to extend my line, with the same bank in fact (TF). Just call a few banks and ask.
Re: Official HELOC (Home Equity Line of Credit) thread
Probably too late, but TF will do a full walkthrough appraisal for $75. I ended up going that route with them and the resulting value was much closer to market. Nothing difficult about it and it only added a couple weeks to the timeline.willthrill81 wrote: ↑Sun Feb 06, 2022 9:56 am+23of10 wrote: ↑Sun Feb 06, 2022 9:53 am+1. I had referred Third Federal to a relative and Third Federal came back with a low-ball appraisal. So, the relative had the choice of going with the lower HELOC amount, or going with a local credit union's higher appraisal that had a higher interest rate. As "Silk McCue" has noted, unless you need the extra money, then go with Third Federal's offer.Silk McCue wrote: ↑Fri Feb 04, 2022 6:55 pmTheir underwriting department works within a very small box at times (recent personal experience). Unless you really need the extra headroom in the HELOC I would just accept the $174k.TJat wrote: ↑Fri Feb 04, 2022 5:37 pm Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
I wouldn't lose any sleep over a $174k HELOC vs. a $200k one unless you know that you truly need the $200k.
The “drive by” appraisal is rough because it’s FREE, and meant to be fast so they can close fast.
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Re: Official HELOC (Home Equity Line of Credit) thread
Try volstatebankgetco wrote: ↑Mon Aug 16, 2021 9:05 pm Looking for some TN specific advice if anyone has any. I have been approved by Third Federal for 200k (their max --at 80% LTV I would qualify for ~350k), and trying to work with BofA since I keep enough there to be platinum honors and they will extend well over 200k. But, BofA sent an email last week that it will be 5-7 weeks until they can assign a loan officer to my application.
Curious if anyone has advice on banks / credit unions who will open HELOCs greater than 200k in TN?
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Re: Official HELOC (Home Equity Line of Credit) thread
Yes, it's far too late for us, but the $200k is fine. I really don't know whether I would have paid $75 to increase it.jharkin wrote: ↑Fri Apr 22, 2022 6:31 amProbably too late, but TF will do a full walkthrough appraisal for $75. I ended up going that route with them and the resulting value was much closer to market. Nothing difficult about it and it only added a couple weeks to the timeline.willthrill81 wrote: ↑Sun Feb 06, 2022 9:56 am+23of10 wrote: ↑Sun Feb 06, 2022 9:53 am+1. I had referred Third Federal to a relative and Third Federal came back with a low-ball appraisal. So, the relative had the choice of going with the lower HELOC amount, or going with a local credit union's higher appraisal that had a higher interest rate. As "Silk McCue" has noted, unless you need the extra money, then go with Third Federal's offer.Silk McCue wrote: ↑Fri Feb 04, 2022 6:55 pmTheir underwriting department works within a very small box at times (recent personal experience). Unless you really need the extra headroom in the HELOC I would just accept the $174k.TJat wrote: ↑Fri Feb 04, 2022 5:37 pm Requested a 3rd federal HELOC for 200,000. They offered 174,000 based on what is imo an inaccurate appraisal. I submitted a dispute letter which provided detail of $100k+ capital improvements not included in the appraisal and more appropriate comps. The alternative now seems to be paying $75 for an interior appraisal to see if that can support a higher value.
I wouldn't lose any sleep over a $174k HELOC vs. a $200k one unless you know that you truly need the $200k.
The “drive by” appraisal is rough because it’s FREE, and meant to be fast so they can close fast.
The Sensible Steward
Re: Official HELOC (Home Equity Line of Credit) thread
We are in the market for a HELOC but the bank overwhelmingly recommended on here (Third Federal) doesn't serve my state (Arkansas). Does anyone have any other recommendations for places to start?
Thanks!
Thanks!
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Re: Official HELOC (Home Equity Line of Credit) thread
Company: Brotherhood CU
State of HELOC: Mass
HELOC Amount: $100k
Mortgage + HELOC LTV: Mine is around 50%. Maximum allowed is 75%
Interest Rate: 2.48% first 12 months, then prime - .51%
Draw period / repayment period: 10 years
Application fee: None
Appraisal and any other fees: $400 appraisal. Must reimburse any closing costs if HELOC cancelled within 36 months.
Annual fee: None
State of HELOC: Mass
HELOC Amount: $100k
Mortgage + HELOC LTV: Mine is around 50%. Maximum allowed is 75%
Interest Rate: 2.48% first 12 months, then prime - .51%
Draw period / repayment period: 10 years
Application fee: None
Appraisal and any other fees: $400 appraisal. Must reimburse any closing costs if HELOC cancelled within 36 months.
Annual fee: None
Light weight baby!
Re: Official HELOC (Home Equity Line of Credit) thread
I am looking for a 500k+ HELOC
Company: union bank
State of HELOC: CA
HELOC Amount: 700k (can go up to 1M with no fees)
Mortgage + HELOC LTV: 75%, (think can go to 80% if primary is with union bank)
Interest Rate: prime + margin (0.75%) - discounts autopay 0.25% and priority checking 0.5% (25k in checking account) = prime
Draw period / repayment period: 10 yo IO/ 20 y repayment
Application fee: 0
Appraisal and any other fees: 0, $450 early termination fee if closed in 3 years, no prepayment fee
Annual fee: 0
ok if home is in a trust
company: alliant credit union
State of HELOC: CA
LTV 90% and max $500k = prime + 1
LTV 85% and max $500k = prime + .25
LTV 80% and max $500k = prime + 0
LTV 70% and max $750k = prime + .75
LTV 60% and max 1M = prime + .75
Draw period / repayment period: 10yo IO / 20 y repayment
Application fee: 0
Appraisal and any other fees: $0 if < 250k, if > 250k then you pay the appraisal fee
Annual fee: $50/yr, waived the 1st year, think there's a $250 or $500 early termination fee if closed within 1 or 2 years.
ok if home is in a trust
Other companies:
Chase: no helocs
BOA: can't use heloc as a bridge loan (I plan to use heloc as downpayment for new home), rate is higher than above, and payment is principal and interest during the first 10y draw period
Company: union bank
State of HELOC: CA
HELOC Amount: 700k (can go up to 1M with no fees)
Mortgage + HELOC LTV: 75%, (think can go to 80% if primary is with union bank)
Interest Rate: prime + margin (0.75%) - discounts autopay 0.25% and priority checking 0.5% (25k in checking account) = prime
Draw period / repayment period: 10 yo IO/ 20 y repayment
Application fee: 0
Appraisal and any other fees: 0, $450 early termination fee if closed in 3 years, no prepayment fee
Annual fee: 0
ok if home is in a trust
company: alliant credit union
State of HELOC: CA
LTV 90% and max $500k = prime + 1
LTV 85% and max $500k = prime + .25
LTV 80% and max $500k = prime + 0
LTV 70% and max $750k = prime + .75
LTV 60% and max 1M = prime + .75
Draw period / repayment period: 10yo IO / 20 y repayment
Application fee: 0
Appraisal and any other fees: $0 if < 250k, if > 250k then you pay the appraisal fee
Annual fee: $50/yr, waived the 1st year, think there's a $250 or $500 early termination fee if closed within 1 or 2 years.
ok if home is in a trust
Other companies:
Chase: no helocs
BOA: can't use heloc as a bridge loan (I plan to use heloc as downpayment for new home), rate is higher than above, and payment is principal and interest during the first 10y draw period
Re: Official HELOC (Home Equity Line of Credit) thread
I'm in a similar position to others here. I'm looking for a bridge loan to buy our retirement house with a cash offer, and make some improvements to the new house, before selling our current house. I am looking for $480,000 and have about $600,000 in equity.
Third Federal does not service my area in Texas, just south of Houston in Harris county.
The remaining small balance mortgage is with Wells Fargo, their site says HELOCs are not available at this time.
Our checking account is with Chase and they appear to do HELOC.
Is being restricted from using a HELOC as a bridge loan common?
Any alternatives / recommendations? Alternative types of loan or other providers in the area?
I expect to need the loan for a few months.
In an update, Chase also told me that no HELOCs are currently available and offered a cash out refi, but the branch loan officer was busy and directed me to the internet. Seems a short term use of a mortgage and the associated origination fees. I also found short term "hard money" loans that appear to be about 8%. I suppose my choice will be a lower rate but higher fees vs a higher rate. I could take some money out of the market, but that is bad timing and would come with tax consequences.
Third Federal does not service my area in Texas, just south of Houston in Harris county.
The remaining small balance mortgage is with Wells Fargo, their site says HELOCs are not available at this time.
Our checking account is with Chase and they appear to do HELOC.
Is being restricted from using a HELOC as a bridge loan common?
Any alternatives / recommendations? Alternative types of loan or other providers in the area?
I expect to need the loan for a few months.
In an update, Chase also told me that no HELOCs are currently available and offered a cash out refi, but the branch loan officer was busy and directed me to the internet. Seems a short term use of a mortgage and the associated origination fees. I also found short term "hard money" loans that appear to be about 8%. I suppose my choice will be a lower rate but higher fees vs a higher rate. I could take some money out of the market, but that is bad timing and would come with tax consequences.
- simplesimon
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Re: Official HELOC (Home Equity Line of Credit) thread
How's this process been? I have a HELOC with Third Federal too and am wondering how much bigger a line I can get.
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Re: Official HELOC (Home Equity Line of Credit) thread
Has anyone recently applied with Third Federal know how long the process takes to open the HELOC?
Re: Official HELOC (Home Equity Line of Credit) thread
We were offered a HELOC with Third Federal at the time our first mortgage refinance with them was also approved.giddyup969 wrote: ↑Fri Jul 01, 2022 6:15 am Has anyone recently applied with Third Federal know how long the process takes to open the HELOC?
Application on 2/27
Appraisal on 3/20
Appraisal results on 3/23
Underwriting approval for mortgage and HELOC 4/10
First mortgage closing 4/29
HELOC closing 6/17
They are very, very slow, not always communicative, but did what they said they would do and the rates are fantastic.
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Re: Official HELOC (Home Equity Line of Credit) thread
We opened the HELOC in May, 5 weeks after submitting the application.giddyup969 wrote: ↑Fri Jul 01, 2022 6:15 am Has anyone recently applied with Third Federal know how long the process takes to open the HELOC?
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Re: Official HELOC (Home Equity Line of Credit) thread
grp2c wrote: ↑Tue Jun 07, 2022 11:48 am I am looking for a 500k+ HELOC
Company: union bank
State of HELOC: CA
HELOC Amount: 700k (can go up to 1M with no fees)
Mortgage + HELOC LTV: 75%, (think can go to 80% if primary is with union bank)
Interest Rate: prime + margin (0.75%) - discounts autopay 0.25% and priority checking 0.5% (25k in checking account) = prime
Draw period / repayment period: 10 yo IO/ 20 y repayment
Application fee: 0
Appraisal and any other fees: 0, $450 early termination fee if closed in 3 years, no prepayment fee
Annual fee: 0
ok if home is in a trust
company: alliant credit union
State of HELOC: CA
LTV 90% and max $500k = prime + 1
LTV 85% and max $500k = prime + .25
LTV 80% and max $500k = prime + 0
LTV 70% and max $750k = prime + .75
LTV 60% and max 1M = prime + .75
Draw period / repayment period: 10yo IO / 20 y repayment
Application fee: 0
Appraisal and any other fees: $0 if < 250k, if > 250k then you pay the appraisal fee
Annual fee: $50/yr, waived the 1st year, think there's a $250 or $500 early termination fee if closed within 1 or 2 years.
ok if home is in a trust
Other companies:
Chase: no helocs
BOA: can't use heloc as a bridge loan (I plan to use heloc as downpayment for new home), rate is higher than above, and payment is principal and interest during the first 10y draw period
Thanks for sharing. Did you decide which one you will use?
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Re: Official HELOC (Home Equity Line of Credit) thread
Can the lender for the first mortgage prevent one from establishing a heloc with a different lender? I have a great fixed rate with my primary lender and want to make sure that establishing a heloc won’t mess that up in any way.
- willthrill81
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Re: Official HELOC (Home Equity Line of Credit) thread
I've never heard of a first mortgage lender doing anything like that and don't think that one legally could prevent a HELOC. Remember that a HELOC is based on home equity, which is the difference between the property's value and outstanding loans secured by it, including a first mortgage. The first mortgage holder has first lien position on the property, so they should be indifferent if there is someone behind them.KeepinItPositive wrote: ↑Sat Jul 02, 2022 5:16 pm Can the lender for the first mortgage prevent one from establishing a heloc with a different lender? I have a great fixed rate with my primary lender and want to make sure that establishing a heloc won’t mess that up in any way.
The Sensible Steward
- willthrill81
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Re: Official HELOC (Home Equity Line of Credit) thread
It's probably not 'recent', but I believe that it took us about 6-8 weeks to complete the process when we opened ours with Third Fed in the summer of 2020.giddyup969 wrote: ↑Fri Jul 01, 2022 6:15 am Has anyone recently applied with Third Federal know how long the process takes to open the HELOC?
The Sensible Steward
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Re: Official HELOC (Home Equity Line of Credit) thread
No they can’t. Regardless, they won’t know unless you tell them.KeepinItPositive wrote: ↑Sat Jul 02, 2022 5:16 pm Can the lender for the first mortgage prevent one from establishing a heloc with a different lender? I have a great fixed rate with my primary lender and want to make sure that establishing a heloc won’t mess that up in any way.
Cheers
Re: Official HELOC (Home Equity Line of Credit) thread
It’s still taking a while. I refied mine in the spring, applied in April, got approved in under 2 weeks but the appraisal took a while and then it got stuck in title for over a month. Closed a couple weeks ago.willthrill81 wrote: ↑Sat Jul 02, 2022 5:26 pmIt's probably not 'recent', but I believe that it took us about 6-8 weeks to complete the process when we opened ours with Third Fed in the summer of 2020.giddyup969 wrote: ↑Fri Jul 01, 2022 6:15 am Has anyone recently applied with Third Federal know how long the process takes to open the HELOC?
Still getting prime-1.01% for balances over 50.
- CardinalRule
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Re: Official HELOC (Home Equity Line of Credit) thread
In about a month, the draw period on our $60,000 Wells Fargo HELOC ends. There is no balance on it currently, but my wife and I have appreciated having it as a "just in case" source of funds, alongside our other WF accounts. We've dipped into it for short periods from time to time over the past 10 years for home improvements and other things.
Not sure how easy/hard it would be to get another HELOC with Wells Fargo. Perhaps I will check with them next week.
EDIT: Poking around wellsfargo.com, I can see why it wasn't possible to simply click a button and start to apply for a new HELOC there:
https://www.wellsfargo.com/equity/line- ... t-details/
Home equity lines of credit are currently unavailable
Due to current market conditions, we are temporarily suspending new applications for home equity lines of credit.
Not sure how easy/hard it would be to get another HELOC with Wells Fargo. Perhaps I will check with them next week.
EDIT: Poking around wellsfargo.com, I can see why it wasn't possible to simply click a button and start to apply for a new HELOC there:
https://www.wellsfargo.com/equity/line- ... t-details/
Home equity lines of credit are currently unavailable
Due to current market conditions, we are temporarily suspending new applications for home equity lines of credit.
Re: Official HELOC (Home Equity Line of Credit) thread
Hi,
Another data point for Third Federal
6/26 - Application submitted
6/28 - Appraisal completed
7/5 - HELOC approved
7/18 - Closed
Happened very quickly.
First post as well!
Another data point for Third Federal
6/26 - Application submitted
6/28 - Appraisal completed
7/5 - HELOC approved
7/18 - Closed
Happened very quickly.
First post as well!
- AndyBogleHeads
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Re: Official HELOC (Home Equity Line of Credit) thread
I am in Texas as well. Third Federal does not offer the product here.onthecusp wrote: ↑Thu Jun 16, 2022 1:02 pm I'm in a similar position to others here. I'm looking for a bridge loan to buy our retirement house with a cash offer, and make some improvements to the new house, before selling our current house. I am looking for $480,000 and have about $600,000 in equity.
Third Federal does not service my area in Texas, just south of Houston in Harris county.
The remaining small balance mortgage is with Wells Fargo, their site says HELOCs are not available at this time.
Our checking account is with Chase and they appear to do HELOC.
Is being restricted from using a HELOC as a bridge loan common?
Any alternatives / recommendations? Alternative types of loan or other providers in the area?
I expect to need the loan for a few months.
In an update, Chase also told me that no HELOCs are currently available and offered a cash out refi, but the branch loan officer was busy and directed me to the internet. Seems a short term use of a mortgage and the associated origination fees. I also found short term "hard money" loans that appear to be about 8%. I suppose my choice will be a lower rate but higher fees vs a higher rate. I could take some money out of the market, but that is bad timing and would come with tax consequences.
What did you finally decide? Could you share please.
- willthrill81
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Re: Official HELOC (Home Equity Line of Credit) thread
Welcome to the forum!
That's about how long it took to close on our HELOC with Third Federal in mid-2020. It seemed that it was longer last year, but rising interest rates have very likely slowed their volume of new applications.
The Sensible Steward