HELOC Close to HELOC Open Timing

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tev9876
Posts: 105
Joined: Thu Sep 14, 2017 9:12 am

HELOC Close to HELOC Open Timing

Post by tev9876 » Fri Mar 16, 2018 10:24 am

I'm wondering how long I should allow for my current HELOC to close and have whatever paperwork taken care of before opening a new one.

My 10 year draw with BoA expires next week. It has no balance so I was just going to let it close on its own rather than spend hours in phone tree hell trying to talk to someone. I want to open a new one as a backup emergency fund, plus I may look at using it to buy vacation property later this year. House is paid off so 75-80% of the value will give me more than enough credit.

Citizens Bank sent me a preapproved offer at Prime -.5%. There was no initial draw requirement or other teaser rate. .25% of that discount comes from setting up automatic checking withdrawal. As long as I can get free checking that is not a big deal to me. Just need to verify there is no annual fee. If there is I would probably just go with PenFed at Prime since I already have accounts there.

Does it matter how long I wait to apply for a new HELOC?

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