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Time to shop for HELOC or home loan

Posted: Thu Oct 03, 2019 11:43 am
by comehither2k18
The draw on my current heloc though Key is coming to an end in a few months. Ive always had the option convert the balance to a fixed rate loan, but never did. Years back we used heloc to pay off mortgage completely because rate was so much lower. So we only have the current Heloc balance, and no mortgage or home loans.
I plan on shopping around for either a 15-20 year fixed rate home loan or a 15-20 year Heloc that has a fixed rate loan option that we would exercise immediately.
We aren't taking about alot of money but I just feel better locked in for our balance.

We have no plans on selling house for atleast 10 years but I think a whole new mortgage would add alot of closing costs right upfront here in New York State.
Basically looking for about $70k on a house that has a market value of about $135k.
We have always paid $600/mnth which is more than the minimum P&I payment.
$600/month is something we are comfortable with... No more.

Anyways, before I check local banks, any suggestions on getting rates elsewhere over internet.? I plugged in numberson Barkrate and they only gave me 1 lender.
My ears are open on any other suggestions, as long as we keep the payment at $600/month
Thanks in advance.

Re: Time to shop for HELOC or home loan

Posted: Thu Oct 03, 2019 12:15 pm
by Silk McCue has the lowest HELOC rates in the nation at 1.01% below prime. Currently at 3.99. They however do not allow you to lock a portion as far as I know. Very low cost to get into.


Re: Time to shop for HELOC or home loan

Posted: Thu Oct 03, 2019 12:25 pm
by batpot
I recently consolidated a HELOC and primary mortgage into a 3.25% fixed 30 year; rates are lower if it makes sense for you to shorten the term.
Zero out of pocket costs.
Check zillow and bankrate for what you can get; it will be way lower, and a fix rate vs any HELOC (though some places still have HELOC promo rates out there).

Re: Time to shop for HELOC or home loan

Posted: Wed Oct 16, 2019 9:24 am
by comehither2k18
Thanks, Still trying to shop rates and I would like to refi into a 15 yr fixed. Did a couple online rate requests and within second the phone is ringing with lenders. They are more interested in doing a pull and closing in few days. And since I'm only borrowing $70k they really don't seem interested. Royal United offered no info was like call us when you are ready... Im like, "you called me!" Jerks

Anyways, any recommendations as far as who to call direct other than local banks. Any favorite credit unions or whatever?

Re: Time to shop for HELOC or home loan

Posted: Wed Oct 16, 2019 10:31 am
by deikel
Local credit union might be worth a look, probably requires a personal visit

I would also caution against the idea of a HELOC and immediately converting it to a loan. You might incur costs from the then closed HELOC, at least on mine, I would have had to pay closing costs on the HELOC had I cancelled the line of credit within three years of the generation. You might run into such....

If you only want 70k as a loan and not take anything out, you are probably better off with a CU that keeps the mortgage loan in their portfolio and does not sell on to Fannie or Freddie - so 10 or 15 yr fix would be the way to go

Re: Time to shop for HELOC or home loan

Posted: Sat Oct 19, 2019 11:18 am
by iflylow
DCU has what you are looking for in a HELOC with an option to convert into up to two concurrent fixed rate HELs at any time for free, at the prevailing HEL rates at that time. Their rates are pretty competitive and their application process was very easy.

I was debating between them and Third Federal and decided on DCU because of the fixed rate options and also because DCU has no annual fees as opposed to I believe $60/year for Third Federal. ... -plus.html