## Official HELOC (Home Equity Line of Credit) thread

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ProfessorX
Posts: 552
Joined: Mon Jul 04, 2011 12:29 pm

### 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!
Maven
Posts: 149
Joined: Sat Dec 08, 2018 4:01 pm

### 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!
cfuser
Posts: 1
Joined: Wed Dec 15, 2021 11:13 pm

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

Maven wrote: Wed Dec 15, 2021 1:09 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!
If I'm understanding right, that looks like about 20 days' interest.

Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by \$4,700 = 38.5 cents a day
Times 20 days = \$7.70
Maven
Posts: 149
Joined: Sat Dec 08, 2018 4:01 pm

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

cfuser wrote: Wed Dec 15, 2021 11:18 pm
Maven wrote: Wed Dec 15, 2021 1:09 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!
If I'm understanding right, that looks like about 20 days' interest.

Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by \$4,700 = 38.5 cents a day
Times 20 days = \$7.70
Thank you!
willthrill81
Posts: 28470
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

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

ProfessorX wrote: Mon Dec 13, 2021 12:52 pm Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?
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.
“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
exodusNH
Posts: 2030
Joined: Wed Jan 06, 2021 8:21 pm

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

ProfessorX wrote: Mon Dec 13, 2021 12:52 pm 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!
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.
Firemenot
Posts: 910
Joined: Wed Apr 01, 2020 8:48 pm

### 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.
TJat
Posts: 469
Joined: Tue May 04, 2021 6:51 am

### 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?
interwebopinion
Posts: 260
Joined: Thu Aug 13, 2020 6:21 pm

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

jst 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.
Not sure that's going to work - see: https://www.irs.gov/newsroom/interest-o ... er-new-law

IRS guidance is that the loan should be "... used to buy, build or substantially improve the taxpayer’s home that secures the loan"
UnLearnYourself
Posts: 487
Joined: Tue Feb 01, 2011 9:19 pm

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

TJat wrote: Fri Jan 14, 2022 2:16 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?
I live in an Owner-occupied 3-family and unfortunately ThirdFed does not lend on anything with more units than a 2-family.

Anybody aware of any lenders who may offer prime minus rates for 3-families?