2022 HELOC Lender Suggestions

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flyingcows
Posts: 409
Joined: Sat Apr 20, 2019 8:13 am

2022 HELOC Lender Suggestions

Post by flyingcows »

Hi Bogleheads,

I have a home worth about 900k with a 300k limit HELOC from BoA, no other mortgage on the property. We initially purchased the home for 450k, so until recently I was fine with the 300k HELOC (interest rate if prime minus 0.55%, or 2.7% currently), as the property has gone up in value considerably I would like the HELOC to be closer to the current market value of the home.

I usually don't carry a balance on the HELOC, I just want the account open as a potential source of liquidity.

I spoke with BoA about refinancing the HELOC, but the upper limit they are able to offer is 500k regardless of home value, they estimated the home value at 880k. Quoted interest rate much higher than my current rate, prime plus 0.6%.

I do like that the BoA HELOCs come with an option to convert a draw into a fixed rate loan at any time.

I looked into Third Federal, but it appears they only offer up to 200k for a HELOC.

Does anyone have any other HELOC lender suggestions, Chase?

Thanks!
I have no idea what I am doing, my posts are all for entertainment purposes only
BruDude
Posts: 3865
Joined: Thu Dec 30, 2010 12:28 am
Location: Las Vegas

Re: 2022 HELOC Lender Suggestions

Post by BruDude »

Check your local credit unions. I got 1.99% first year promo rate and then it resets to 4% for year 2
Silk McCue
Posts: 6504
Joined: Thu Feb 25, 2016 7:11 pm

Re: 2022 HELOC Lender Suggestions

Post by Silk McCue »

What do you imagine needing beyond $300k from a liquidity perspective? I see no correlation between home value and that desired liquidity other than a math equation.

Some itches shouldn’t be scratched.

Cheers
Firemenot
Posts: 901
Joined: Wed Apr 01, 2020 8:48 pm

Re: 2022 HELOC Lender Suggestions

Post by Firemenot »

I’m bumping this thread. I want to build a backyard accessory dwelling unit in California and 200K isn’t near enough. I’d like a larger HELOC amount as well, with Third Federal like rates (i.e., Prime - 1%). For a period of time Third Federal had bumped it up to 250k. Sadly they bumped it back down.
Silk McCue
Posts: 6504
Joined: Thu Feb 25, 2016 7:11 pm

Re: 2022 HELOC Lender Suggestions

Post by Silk McCue »

For large project you would likely be better served with a fixed rate home equity loan. Prime will assuredly be going up.

Cheers
Firemenot
Posts: 901
Joined: Wed Apr 01, 2020 8:48 pm

Re: 2022 HELOC Lender Suggestions

Post by Firemenot »

Silk McCue wrote: Thu Jan 13, 2022 12:30 pm For large project you would likely be better served with a fixed rate home equity loan. Prime will assuredly be going up.

Cheers
I’ve looked into that. Problem is I can only find ones with 5 year or 10 year terms. And the higher interest rate makes a gamble on a HELOC likely worth it. The HELOC rate is 1.5-2+ points lower.

And cashout refis aren’t so appealing due to the rates raising quite a bit.
Topic Author
flyingcows
Posts: 409
Joined: Sat Apr 20, 2019 8:13 am

Re: 2022 HELOC Lender Suggestions

Post by flyingcows »

Thanks all,

Interestingly I tried contacting a few banks yesterday, and none of them were accepting HELOC applications currently, including big banks like Chase and Wells Fargo. They were offering cash out refinances, but I don't want/need the money at this time, just want the option to pull from it in the future
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Count of Notre Dame
Posts: 372
Joined: Fri Oct 11, 2013 1:08 pm

Re: 2022 HELOC Lender Suggestions

Post by Count of Notre Dame »

BofA and Union Bank offer one but might be only if you have a primary mortgage with them. I've used HELOCs before as temporary emergency funds, but I plan to use portfolio margin because those interest rates are 1% below mortgage rates on average. HELOCs tend to be 1% above mortgage rates, unless the term is really short 10-15 years.
Silk McCue
Posts: 6504
Joined: Thu Feb 25, 2016 7:11 pm

Re: 2022 HELOC Lender Suggestions

Post by Silk McCue »

flyingcows wrote: Fri Jan 14, 2022 10:37 am Thanks all,

Interestingly I tried contacting a few banks yesterday, and none of them were accepting HELOC applications currently, including big banks like Chase and Wells Fargo. They were offering cash out refinances, but I don't want/need the money at this time, just want the option to pull from it in the future
You’ll just have to muddle through with your $300k HELOC I guess.

Cheers
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