Official HELOC (Home Equity Line of Credit) thread

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JohnSmith123
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Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

I could not find an official thread for this, so I created one!
Please post your best rates, tips,etc on the HELOC rates you have gotten:

Company:
State of HELOC:
HELOC Amount:
Mortgage + HELOC LTV:
Interest Rate:
Draw period / repayment period:
Application fee:
Appraisal and any other fees:
Annual fee:

Thanks!
Last edited by JohnSmith123 on Wed Dec 23, 2020 8:40 pm, edited 1 time in total.
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JohnSmith123
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

I am looking for a $250k HELOC in California, < 50% LTV. Any tips -- I can't seem to find anyone with a good rate below prime.
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

JohnSmith123 wrote: Wed Dec 23, 2020 8:18 pm I could not find an official thread for this, so I created one!
Please post your best rates, tips,etc on the HELOC rates you have gotten:

Company:
State of HELOC:
HELOC Amount:
Mortgage + HELOC LTV:
Interest Rate:
Draw period / repayment period:
Application fee:
Annual fee:

Thanks!
You should add appraisal fee and early termination fee as well.
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

JohnSmith123 wrote: Wed Dec 23, 2020 8:20 pm I am looking for a $250k HELOC in California, < 50% LTV. Any tips -- I can't seem to find anyone with a good rate below prime.
Third federal had great rates but I think they are limited to $200k.
https://www.thirdfederal.com/borrowing/home-equity

Otherwise, we use SFFireCU for our HELOC. Rate is Prime.
https://sffirecu.org/home-equity
Last edited by mervinj7 on Sat Apr 03, 2021 10:48 am, edited 1 time in total.
shanghaista
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by shanghaista »

An email I sent my sister 3 months ago when she was looking at options. Prime rate should still apply (3.25%). Credit union offers trumped all the banks (even local/community banks).

This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%

2) https://www.iccreditunion.org/loans/hom ... oc-special - IC CU
1.79% intro for 12 months, then Prime minus 1.00% with a floor of 3.5%
Maximum loan of $250,000

3) Rockland Federal Credit Union - Rates - Rockland FCU (https://www.rfcu.com/home/rates#HomeEquityRates)
Prime minus 0.5% with a floor of 2.5%

4) Home Equity Rates - Sharon/Crescent CU (https://www.scucu.com/personal/rates/home-equity-rates)
Prime minus 0.5% with floor of 3.5%
shanghaista
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by shanghaista »

Personal Experience

Company: IC Credit Union
State of HELOC: Massachusetts
HELOC Amount: $250,000 (maximum amount)
Mortgage + HELOC LTV: 71.43% (appraisal of $350,000)
Interest Rate: 1.79% for 12 months, then Prime minus 1.00% (Floor of 3.50%)
Draw period / repayment period: 10 year draw, 15 year repayment-only (25 total)
Application fee: Not 100% sure, I believe $600-$800 that was waived but will be charged if I close it within 2 years
Appraisal and any other fees: $400
Annual fee: $0

Floor rate of 3.5% will hurt when it hits next month, but a prime minus 1 percentage point is really hard to beat. That and it's a local credit union, they waived our application fees, and the fact that we saved ~$700/month (mortgage was 4.875% with Dec 2018 close) with the 1.79% intro is really something I am grateful for. The only thing I'm considering is another credit union offer that is Prime minus 0.75%, but with a floor of 2.50% instead. I would love to switch, but I might've burned a bridge convincing my wife to do this HELOC as it is.

It was impossible getting banks (especially Wells Fargo, Bank of America, etc...) to accept that I wanted to REPLACE the mortgage entirely with a HELOC. That's why I love the local and personal touch of credit unions.
MAJIC9
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by MAJIC9 »

Company: BofA
Mortgage + HELOC LTV: 70%
Interest Rate: 2.835
Draw period / repayment period: 10+20
Application fee: 0
Appraisal and any other fees: 0
Annual fee: 0
Has early termination fee (if closed in first three years).. not sure what the amount is..

it was quick and easy process and no fees at all upfront.. but they force you to keep the heloc open for a few years in return (you can keep zero balance and not pay interest).

Note: only was available to customers who had no mortgage or had mortgage through BofA.. and being Platinum Honors helped reduce interest rate.
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JohnSmith123
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

shanghaista wrote: Wed Dec 23, 2020 8:49 pm An email I sent my sister 3 months ago when she was looking at options. Prime rate should still apply (3.25%). Credit union offers trumped all the banks (even local/community banks).

This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%

2) https://www.iccreditunion.org/loans/hom ... oc-special - IC CU
1.79% intro for 12 months, then Prime minus 1.00% with a floor of 3.5%
Maximum loan of $250,000

3) Rockland Federal Credit Union - Rates - Rockland FCU (https://www.rfcu.com/home/rates#HomeEquityRates)
Prime minus 0.5% with a floor of 2.5%

4) Home Equity Rates - Sharon/Crescent CU (https://www.scucu.com/personal/rates/home-equity-rates)
Prime minus 0.5% with floor of 3.5%
Thanks — I contacted both and they will only loan in their area — still great find and thank you for helping everyone. I am on the look out for california...
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Kenkat
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Kenkat »

Company: Third Federal Savings
State of HELOC: Ohio
HELOC Amount: $100,000
Mortgage + HELOC LTV: don’t know, don’t care :wink:
Interest Rate: Prime minus 1.01%, currently 2.24%
Draw period / repayment period: 10 years / 10 years (minimum payment $100/mo even during draw period)
Application fee: none, I actually got a $200 Home Depot gift card (Third Federal also holds my mortgage)
Appraisal and any other fees: none
Annual fee: none
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by abuss368 »

We have a line of credit that is a personal line of credit. The interest rate is higher but it is NOT attached to the house.

The older I get, the more I appreciate that. I do not want the house touched.

I also learned from years ago that an attached line of credit made it harder to refinance the existing mortgage.

One has to do what works best for their individual facts and circumstances.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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JohnSmith123
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

In my case I absolutely need the HELOC. I have the option of deferring my salary 100% the next 3 years, and then getting it paid out the next 10 years spread out at a much lower tax rate. So lowering my tax rate substantially.

I need to money to live on, and happily pay back the heloc once the deferred payments kick in.
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JohnSmith123
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

Ok - more investigations

Third Federal - 2.24 % (Prime - 1.01 % ) best rate BUT during the draw period -- the amount you borrow is amortized over the 20 year repayment period so you are paying back principal starting day 1. Not a big deal killer, but essentially you are paying the loan back interest+principal starting on day 1. Uptoo $200,000 HELOC. No costs, expect $65 yearly fee.

Standford Credit Union - 2.24% for the first year, then prime afterwards. Interest only for the first 10 years. No closing costs. $500 cost if closed within the first 3 years. Upto $250,000.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by unknownENG »

Any information for Idaho? I think HELOC's are state specific, right? Can't cross state lines?

Has anyone done much learning about 1st vs 2nd position HELOC's? I get the feeling this question is rife with 'Coaches" that are trying to sell me some program.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by JohnSmith123 »

unknownENG wrote: Mon Dec 28, 2020 6:15 pm Any information for Idaho? I think HELOC's are state specific, right? Can't cross state lines?

Has anyone done much learning about 1st vs 2nd position HELOC's? I get the feeling this question is rife with 'Coaches" that are trying to sell me some program.
HELOC's are not state specific as far as know, it depends on the particular bank/company and where they are licensed. Many do lending in multiple states. Can not comment on 1st or 2nd position HELOC. Most HELOCs I have seen are 2nd to the primary mortgage. They do not typically allow to be subordinate to a 2nd existing mortgage.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Oregano »

JohnSmith123 wrote: Mon Dec 28, 2020 2:05 pm Ok - more investigations

Third Federal - 2.24 % (Prime - 1.01 % ) best rate BUT during the draw period -- the amount you borrow is amortized over the 20 year repayment period so you are paying back principal starting day 1. Not a big deal killer, but essentially you are paying the loan back interest+principal starting on day 1. Uptoo $200,000 HELOC. No costs, expect $65 yearly fee.
But as long as they don't freeze it on you, you can just write another check later on for the un-drawn balance.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by jst »

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

Post by Baconator »

Anyone get a HELOC recently and have some updated recommendations? Third Federal won’t work for me since my house is in a living trust. I’ve been considering Patelco and Stanford CU. Was also thinking about calling First Republic.

Any updated recommendations would be appreciated, thanks!
Last edited by Baconator on Sat Apr 03, 2021 12:34 am, edited 1 time in total.
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

Baconator wrote: Sat Apr 03, 2021 12:33 am Anyone get a HELOC recently and have some updated recommendations? Third Federal won’t work for me since my house is in a living trust. I’ve been considering Patelco and Stanford CU. Was also thinking about calling First Republic.

Any updated recommendations would be appreciated, thanks!
We used SFFireCU. Didn't take the house out of the trust.
https://sffirecu.org/home-equity
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

We got a HELOC last year from Third Federal for our paid-off home. There were no closing costs, and the interest rate is .26% below Prime, the lowest I was able to find anywhere by a significant margin. It took us about six weeks to close, and the staff I've worked with have generally been excellent.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

mervinj7 wrote: Wed Dec 23, 2020 8:24 pm Third federal had great rates but I think they are limited to $150k.
https://www.thirdfederal.com/borrowing/ ... me-expense
That link is for a home equity loan, not a HELOC.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

shanghaista wrote: Wed Dec 23, 2020 8:49 pm An email I sent my sister 3 months ago when she was looking at options. Prime rate should still apply (3.25%). Credit union offers trumped all the banks (even local/community banks).

This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%

2) https://www.iccreditunion.org/loans/hom ... oc-special - IC CU
1.79% intro for 12 months, then Prime minus 1.00% with a floor of 3.5%
Maximum loan of $250,000

3) Rockland Federal Credit Union - Rates - Rockland FCU (https://www.rfcu.com/home/rates#HomeEquityRates)
Prime minus 0.5% with a floor of 2.5%

4) Home Equity Rates - Sharon/Crescent CU (https://www.scucu.com/personal/rates/home-equity-rates)
Prime minus 0.5% with floor of 3.5%
Wow, those are crazy low rates!
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

willthrill81 wrote: Sat Apr 03, 2021 9:41 am
mervinj7 wrote: Wed Dec 23, 2020 8:24 pm Third federal had great rates but I think they are limited to $150k.
https://www.thirdfederal.com/borrowing/ ... me-expense
That link is for a home equity loan, not a HELOC.
Corrected link but like I mentioned above, we chose our local credit union since they can handle houses in trusts.

https://www.thirdfederal.com/borrowing/home-equity
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

mervinj7 wrote: Sat Apr 03, 2021 10:00 am
willthrill81 wrote: Sat Apr 03, 2021 9:41 am
mervinj7 wrote: Wed Dec 23, 2020 8:24 pm Third federal had great rates but I think they are limited to $150k.
https://www.thirdfederal.com/borrowing/ ... me-expense
That link is for a home equity loan, not a HELOC.
Corrected link but like I mentioned above, we chose our local credit union since they can handle houses in trusts.

https://www.thirdfederal.com/borrowing/home-equity
That makes sense.

Our HELOC with Third Federal was for more than $150k. I haven't seen anything on their site about caps.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

willthrill81 wrote: Sat Apr 03, 2021 10:08 am That makes sense.

Our HELOC with Third Federal was for more than $150k. I haven't seen anything on their site about caps.
The online quote stops at $200k for a Third Federal HELOC. Maybe it's a soft limit and you can request more.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by donaldc »

Company: Wells Fargo
State: California
Amount: $1M.
Mortgage + HELOC LTV : 30%
Interest rate: Prime minus 0.5%
Draw period: 10 years.
Application fee: zero
Appraisal: zero
Annual fee: zero
Note: requires linked Wells Fargo checking. Offered me $1.5M but I declined.
DIFAR31
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by DIFAR31 »

Company: Bangor Savings Bank
State of HELOC: Multiple New England states
HELOC Amount: $10,000 to $1,000,000
Mortgage + HELOC LTV: 80% max
Interest Rate: Prime minus 0.75% (no-fee checking account with lender required)
Draw period / repayment period: 10 years / 15 years
Application fee: $0
Appraisal and any other fees: $450 early termination (36 months); if required, possible fee of $500 to $1,500 for appraisal and/or title insurance
Annual fee: $0
btc.cfo
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by btc.cfo »

donaldc wrote: Sun Apr 04, 2021 6:36 pm Company: Wells Fargo
State: California
Amount: $1M.
Mortgage + HELOC LTV : 30%
Interest rate: Prime minus 0.5%
Draw period: 10 years.
Application fee: zero
Appraisal: zero
Annual fee: zero
Note: requires linked Wells Fargo checking. Offered me $1.5M but I declined.
I just got off a phone call with WF and they said they paused HELOCs last year and haven't restarded them yet. Would you mind sharing the agent's contact?
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by btc.cfo »

willthrill81 wrote: Sat Apr 03, 2021 9:40 am We got a HELOC last year from Third Federal for our paid-off home. There were no closing costs, and the interest rate is .26% below Prime, the lowest I was able to find anywhere by a significant margin. It took us about six weeks to close, and the staff I've worked with have generally been excellent.
How long did it take for them to call you after you filled out the application online?
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

btc.cfo wrote: Tue Apr 13, 2021 5:15 pm
willthrill81 wrote: Sat Apr 03, 2021 9:40 am We got a HELOC last year from Third Federal for our paid-off home. There were no closing costs, and the interest rate is .26% below Prime, the lowest I was able to find anywhere by a significant margin. It took us about six weeks to close, and the staff I've worked with have generally been excellent.
How long did it take for them to call you after you filled out the application online?
I don't recall exactly now. I think it only took a couple of days.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by lemonPepper »

I refinanced recently. I'm wondering if there is a certain amount of time you need to wait before applying for a HELOC. I saw that the mortgage agreement has certain terms about not applying for other loans.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by btc.cfo »

willthrill81 wrote: Tue Apr 13, 2021 10:49 pm
btc.cfo wrote: Tue Apr 13, 2021 5:15 pm
willthrill81 wrote: Sat Apr 03, 2021 9:40 am We got a HELOC last year from Third Federal for our paid-off home. There were no closing costs, and the interest rate is .26% below Prime, the lowest I was able to find anywhere by a significant margin. It took us about six weeks to close, and the staff I've worked with have generally been excellent.
How long did it take for them to call you after you filled out the application online?
I don't recall exactly now. I think it only took a couple of days.
They emailed me 2 days after I submitted app online.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by kski74 »

shanghaista wrote: Wed Dec 23, 2020 8:49 pm This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%
In Mass Bay CU's terms, it states that there is a "Minimum $10,000 draw at closing and $1,000 advances thereafter."

Does that mean that future draws are limited to $1,000 each time? No clear what an "advance" is after the initial draw.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

kski74 wrote: Sun Apr 18, 2021 2:07 pm
shanghaista wrote: Wed Dec 23, 2020 8:49 pm This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%
In Mass Bay CU's terms, it states that there is a "Minimum $10,000 draw at closing and $1,000 advances thereafter."

Does that mean that future draws are limited to $1,000 each time? No clear what an "advance" is after the initial draw.
It sounds like there is a minimum $1,000 draw after the initial minimum draw of $10k.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by kski74 »

willthrill81 wrote: Sun Apr 18, 2021 2:12 pm
kski74 wrote: Sun Apr 18, 2021 2:07 pm
shanghaista wrote: Wed Dec 23, 2020 8:49 pm This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%
In Mass Bay CU's terms, it states that there is a "Minimum $10,000 draw at closing and $1,000 advances thereafter."

Does that mean that future draws are limited to $1,000 each time? No clear what an "advance" is after the initial draw.
It sounds like there is a minimum $1,000 draw after the initial minimum draw of $10k.
That would make sense. Thanks. Seems like a pretty great rate.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

kski74 wrote: Sun Apr 18, 2021 2:16 pm
willthrill81 wrote: Sun Apr 18, 2021 2:12 pm
kski74 wrote: Sun Apr 18, 2021 2:07 pm
shanghaista wrote: Wed Dec 23, 2020 8:49 pm This relates to Massachusetts:

1) Loan Rates - Mass Bay CU (https://www.massbaycu.org/resources/rates)
1.75% intro for 6 months, then Prime minus 0.75% with floor of 2.5%
In Mass Bay CU's terms, it states that there is a "Minimum $10,000 draw at closing and $1,000 advances thereafter."

Does that mean that future draws are limited to $1,000 each time? No clear what an "advance" is after the initial draw.
It sounds like there is a minimum $1,000 draw after the initial minimum draw of $10k.
That would make sense. Thanks. Seems like a pretty great rate.
Indeed it is. Virtually all 30 year mortgage rates are higher than that now, at least according to Bankrate.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
Count of Notre Dame
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

Baconator wrote: Sat Apr 03, 2021 12:33 am Anyone get a HELOC recently and have some updated recommendations? Third Federal won’t work for me since my house is in a living trust. I’ve been considering Patelco and Stanford CU. Was also thinking about calling First Republic.

Any updated recommendations would be appreciated, thanks!
I bank and have my primary mortgage with First Republic and don't believe they do HELOCs (correct me if I'm wrong). I also have the same problem with Third Federal which is a bummer since it's the lowest rate I could find, although they do require principal payments immediately whereas Stanford CU is just interest only in the first 10 years.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by apranger »

Count of Notre Dame wrote: Tue Jun 01, 2021 11:34 am
Baconator wrote: Sat Apr 03, 2021 12:33 am Anyone get a HELOC recently and have some updated recommendations? Third Federal won’t work for me since my house is in a living trust. I’ve been considering Patelco and Stanford CU. Was also thinking about calling First Republic.

Any updated recommendations would be appreciated, thanks!
I bank and have my primary mortgage with First Republic and don't believe they do HELOCs (correct me if I'm wrong). I also have the same problem with Third Federal which is a bummer since it's the lowest rate I could find, although they do require principal payments immediately whereas Stanford CU is just interest only in the first 10 years.
I think First Republic will do a HELOC, but only if if they are the primary lien holder. They don't subordinate (source: friend who works there).

I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by simplesimon »

apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I am applying with Third Federal thanks go Bogleheads.

How long did it take to close? They quoted me 75 business days which seems very long.
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

simplesimon wrote: Tue Jun 01, 2021 5:17 pm
apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I am applying with Third Federal thanks go Bogleheads.

How long did it take to close? They quoted me 75 business days which seems very long.
I believe it took us about 45 calendar days to close. They must be much busier now.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I wouldn't quite call this painless nor is it free. If you refinance your primary mortgage, do you have to repeat these steps again?
Count of Notre Dame
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

mervinj7 wrote: Tue Jun 01, 2021 5:38 pm
apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I wouldn't quite call this painless nor is it free. If you refinance your primary mortgage, do you have to repeat these steps again?
Yes I'm debating if it's worth it. If the rate was prime - 1% + interest only payments required in the first 10 years, probably worth it for me. Looks like I can get a prime rate + interest only payments so I will probably go with either Stanford FCU or SF Fire CU offering these terms.
mervinj7
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by mervinj7 »

Count of Notre Dame wrote: Wed Jun 02, 2021 11:38 am
mervinj7 wrote: Tue Jun 01, 2021 5:38 pm
apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I wouldn't quite call this painless nor is it free. If you refinance your primary mortgage, do you have to repeat these steps again?
Yes I'm debating if it's worth it. If the rate was prime - 1% + interest only payments required in the first 10 years, probably worth it for me. Looks like I can get a prime rate + interest only payments so I will probably go with either Stanford FCU or SF Fire CU offering these terms.
In your case, you could also consider a First Republic personal line of credit, if you are already with them for checking.
Count of Notre Dame
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Count of Notre Dame »

mervinj7 wrote: Wed Jun 02, 2021 11:50 am
Count of Notre Dame wrote: Wed Jun 02, 2021 11:38 am
mervinj7 wrote: Tue Jun 01, 2021 5:38 pm
apranger wrote: Tue Jun 01, 2021 4:39 pm I just completed a HELOC with Third Federal. My house is in a living trust. I just filed the necessary deed with the county to take the house of the trust, get the loan, and I'm just now filing the paperwork to put it back into the trust. It cost a few hundred bucks for my lawyer to draft the paperwork, but the process of moving the house in/out of trust was painless.
I wouldn't quite call this painless nor is it free. If you refinance your primary mortgage, do you have to repeat these steps again?
Yes I'm debating if it's worth it. If the rate was prime - 1% + interest only payments required in the first 10 years, probably worth it for me. Looks like I can get a prime rate + interest only payments so I will probably go with either Stanford FCU or SF Fire CU offering these terms.
In your case, you could also consider a First Republic personal line of credit, if you are already with them for checking.
I do already have one with them! It's $100k @ 3.5%, but it turns into amortizing payments after two years. I was hoping for a long term revolving credit. Maybe I will ask them about a HELOC but I did just refinance my primary mortgage with them, and I know they have very conservative LTV requirements. I was looking for a HELOC in the 70-80 LTV range of my home, since my primary mortgage is at 70 LTV.
neednewcar
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by neednewcar »

I haven't gotten a HELOC yet but here's my deal:

We currently own a house and I would like to open a HELOC to use as a down payment for a house at an unknown time (up to 10 year timeline) in the future. We'd sell our house if we buy a new one and then pay off the HELOC with the proceeds. I have about 60k in cash I was holding for down payment that I want to put in the market so I'm not so cash heavy. I want to get it working for me and protect from inflation.

If the perfect house / price were to be available we might buy now but most likely moving in 1 to 5 years from now.

As such, I'm really not too worried about the interest rate. Just the fees to open and maintain.

Third Federal seemed to have a good deal.
$65 a year waived the first year.
APR is 2.240%
My county requires a $388 recordation fee no matter what.

Any advice on a better option or this strategy in general?
Parkinglotracer
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Location: Upstate NY

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

Post by Parkinglotracer »

I found a no closing cost heloc from a local community bank - no fees if I don’t use it unless I close it within 3 years - interest rate is currently 3.25%

Never used it but have it for a bridge loan on new house if desired
getco
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by getco »

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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gordon9775
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by gordon9775 »

Hi all —

I rarely get a chance to offer advice on this board so I'm pleased to be able to discuss my HELOC experience here.

My wife and I decided to sell our big house and move back to the state where we got married and where family is. We are having a small (ADU) house built and are using a HELOC as a bridge loan. That will give us the luxury of being able to move when the house is done and then have our realtor come in and prep this place for market.

We went with PenFed Credit Union. It came in first or second on a couple of lists (like Bankrate) for best HELOC interest rates. Rates aren't a big concern for us, since it's a bridge loan, but PenFed didn't have a 200K limit, unlike our local banks and CUs. The process was initiated 1/6/21 and the closing was 3/3/21 — and probably could have closed a couple of weeks sooner, the delays mostly being on my end. I also found their online banking to be much better than our local CU, so I've moved all our personal banking over to PenFed.

The only negative was the appraisal, which lowballed what the house will actually sell for. I'm about to post a question on another thread about funding the gap between what the HELOC gave us and what the new house will cost. But that's not a critique of PenFed so much as third-party drive-by appraisals. Hope that helps.
‘Well done, good and faithful servant. You have been faithful over a little; I will set you over much.’ Matthew 25:21
wineandplaya
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by wineandplaya »

For Wisconsin folks: UWCU is offering 0.99 % intro rate for 12 months on their HELOCs, with no annual fees or closing fees. We opened one earlier this year (when the rate was 1.49 %) to accelerate our mortgage payoff. After the intro period, the rate becomes the Wall Street Journal Prime with a floor of 3.99 % or higher depending on LTV.
CygX1
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by CygX1 »

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.
Bryan995
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Bryan995 »

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.
Same - can any current member please offer a referral to third federal :)
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